Big worry for India as Donald Trump issues strong warning, threatens to impose…

Trump’s chosen Commerce Secretary, Howard Lutnick, echoed his stance, confirming that "reciprocity" will be a central theme in the Trump administration’s trade policy.

Published date india.com Published: December 18, 2024 8:07 AM IST
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Donald Trump, the upcoming President of the United States, has threatened to impose reciprocal taxes on India. He stated that if India imposes taxes on American products, the U.S. will impose equivalent taxes on Indian products. Trump reiterated his intention to introduce reciprocal tariffs in response to what he described as “high tariffs” levied by India on certain U.S. imports. While speaking to the media, Trump said, “Reciprocal. If they tax us, we will tax them equally. They tax us. We will tax them.” He further added, “They impose taxes on us, in almost every case. They tax us, and we don’t tax them.”

India Among High-Tariff Countries: Trump

Trump said the US is liberal when it comes to tariffs, but countries like China, Brazil and India impose high tariffs. He said India imposes the highest tariffs and American businesses have cited high tariffs as a challenge in the Indian market. Responding to a question on a potential trade agreement with China, Trump highlighted the issue of unfair trade practices.

Trump stated, “The word ‘reciprocal’ is key. If someone is charging us—take India, we don’t even need to talk about ourselves—if India charges us 100%, should we not charge them anything? They send us bicycles, and we send them bicycles. They charge us 100-200%.”

He emphasized, “India charges excessively. Brazil charges excessively. If they want to impose tariffs on us, that’s fine, but we’re going to charge them the same in return.” Trump while speaking to the members of the Detroit Economic Club, accused India of being the “biggest charger” of tariffs, citing the example of import taxes on Harley Davidson bikes, which he had previously complained about during his first term in office.

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He highlighted his past interactions where he learned of the challenges posed by India’s tariffs, which he cited as being as high as 150 percent. “I said how’s business? Good, good. What are the bad countries? Well, India is very tough. And they gave me some others. Why? Tariffs. I said what are they? And they said like 150 per cent, some massive amount,” Trump had said earlier.

U.S. Commerce Secretary Endorses Trump’s Policy

Trump’s chosen Commerce Secretary, Howard Lutnick, echoed his stance, confirming that “reciprocity” will be a central theme in the Trump administration’s trade policy. Explaining the approach in simple terms, Lutnick said, “If Country 1 imposes taxes on Country 2, then Country 2 can impose equivalent taxes on Country 1. It is up to Country 2 to decide how much to impose in return.”

He added, “You should expect to be treated the same way you treat us.” This reinforces Trump’s message of implementing equal and fair trade policies under his administration.

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