Washington D.C. – Former US President Donald Trump has introduced ‘discounted’ reciprocal tariffs on several countries, including India, aiming to establish fair trade practices. Under this policy, India will be charged a 26% tariff on exports to the US—half of what New Delhi imposes on American imports.
Trump’s Push for ‘Fair Trade’
In a statement, Donald Trump criticized India’s high tariffs, claiming that the US has long faced unfair trade barriers. The reciprocal tariff policy aims to correct trade imbalances by matching duties imposed by trading partners.
Impact on India-US Trade
India currently charges over 50% tariffs on certain American goods, making the 26% tariff on Indian imports a calculated move to encourage more balanced trade. Key sectors affected include automobiles, agriculture, and pharmaceuticals.
Trade Experts React
Economists predict that India may retaliate with countermeasures, potentially escalating trade tensions. The move is expected to impact Indian exporters in sectors like textiles, steel, and IT products, which rely heavily on US markets.
What’s Next?
With US elections approaching, Trump’s trade policies are being closely watched. If re-elected, he is likely to expand reciprocal tariffs, further affecting India-US economic ties.
