US President-elect Donald Trump has threatened to impose reciprocal tariffs on India, accusing the country of charging excessively high duties on American goods. He highlighted India’s 100% tariffs on certain products, questioning why the US allows lower or no tariffs in return.
Speaking at a press conference in Mar-a-Lago, Trump named India, Brazil, and China as key offenders in imposing high tariffs on US exports. “If India charges us 100%, should we charge them nothing for the same?” he asked, emphasizing his administration’s commitment to trade fairness under the “America First” policy.
Trump’s remarks follow his long-standing criticism of India’s trade practices, including during his first term, when he removed India’s preferential trade status under the Generalized System of Preferences (GSP) program in 2019. The decision led to retaliatory tariffs by India on 28 US products, including almonds and apples.
Bilateral trade between the US and India exceeded $120 billion in FY24, making the US India’s largest export destination. However, Trump’s renewed focus on tariffs could strain the relationship, particularly as India emerges as a key strategic partner for the US in counterbalancing China in the Indo-Pacific.
Analysts caution that a tariff war could impact ongoing economic and geopolitical cooperation between the two nations. The Biden administration’s efforts to strengthen India-US ties might face setbacks under Trump’s proposed trade measures.
Trump also linked potential tariffs to his broader concerns over BRICS nations, threatening 100% duties on members seeking to challenge the US dollar as the global trade currency. India’s foreign minister, however, downplayed concerns, stating that India is well-positioned to engage with the incoming administration.
With Trump set to take office, global trade dynamics are poised for significant shifts, with potential consequences for India’s export-heavy industries and its broader relationship with Washington.
