In a major escalation of US-India trade tensions, President Donald Trump announced a 26% tariff on Indian imports, citing unfair trade practices.
Trump recalled a recent conversation with Prime Minister Narendra Modi, where he expressed concerns over India’s high import duties.
US President Donald Trump signs Executive Orders, unveils reciprocal tariffs on countries pic.twitter.com/FZzb7j0Udt
— NDTV (@ndtv) April 2, 2025
“You’re a friend, but you’ve not been treating us right,” Trump said he told PM Modi.
US Strikes Back With “Fair” Reciprocal Tariffs
According to Trump, India imposes a 52% tariff on US goods. To counter this, the US will now charge Indian imports half of that – 26%.
“America will charge other countries only half of what they charge us. That is fair,” Trump declared.
New Baseline Tariff & Country-Specific Rates
The US will also implement a 10% baseline tariff on all imported goods starting April 5. The higher country-specific tariffs will take effect on April 9.
The new tariffs on other nations include:
- China – 34%
- Vietnam – 46%
- Taiwan – 32%
- Japan – 24%
- European Union – 20%
- United Kingdom – 10%
- Bangladesh – 37%
- Pakistan – 29%
- Sri Lanka – 44%
- Israel – 17%
Trump Declares “Liberation Day” For US Industry
Trump framed the tariffs as a bold step to reclaim US jobs and industry.
“For far too long, other countries have looted and plundered us,” Trump said.
He declared April 2 as “Liberation Day”, stating that America will no longer allow unfair trade policies.
“Jobs will come roaring into America now,” he added.
Uncertain Impact on US-India Trade Relations
While the tariffs aim to level the playing field, they could strain US-India trade ties.
Trump did not specify which Indian industries would be most affected, leaving businesses uncertain about the impact.
As India prepares to respond, experts predict a potential trade standoff between the two nations.
