Reciprocal Tariff EXPLAINED: Does It Threaten India Even More? What Experts Say

(MENAFN- Live Mint) President Donald trump on Thursday ordered his administration to consider imposing reciprocal tariffs on numerous trading partners noting that 'the United States will no longer tolerate being ripped off'. A White House statement quoting President Trump said that despite the US having an open economy, its trading partners block US exports.“And reciprocal trade will finally correct that imbalance.”

“I've decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump said in the Oval Office.“In almost all cases, they're charging us vastly more than we charge them, but those days are over.”

As per the new orders, fresh import taxes would be customised for each country to counter their tariffs on U.S. goods and other trade barriers. According to a White House memo, these include unfair subsidies, strict regulations, value-added taxes, exchange rates, weak intellectual property rules, and other policies that restrict U.S. trade.

Trump further stated that he would enact import taxes on cars, semiconductors, and pharmaceuticals“over and above” the reciprocal tariffs later.

Will reciprocal tariffs impact India?

The move is significant for India as Trump's announcement comes just hours before Prime Minister Narendra Modi 's visit.

Also Read | PM Modi US Visit LIVE: PM Modi rejects India's neutral stance on Ukraine war

Trump, during his campaign, often mentioned reciprocal tariffs for India and China, saying,“If they hit us with a 100 or 200% tariff on American-made goods, we will hit them with the same exact tariff. In other words, 100 per cent is 100 per cent. If they charge us, we charge them an eye for an eye, a tariff for a tariff, and the same exact amount.”

While signing the order on Thursday, he specifically mentioned India saying,“India has more tariffs than nearly any other country” making his intentions clear on reciprocal tariff .

MENAFN14022025007365015876ID1109206190