Donald Trump Announces 27% ‘Discounted Reciprocal Tariff’ On Indian Goods

Last Updated:April 03, 2025, 14:47 IST

Trump said that Prime Minister Narendra Modi is a great friend of his and noted that the US had not imposed tariffs on India for many years.

US President Donald Trump.

Signalling a tougher stance on trade policies, US president Donald Trump on Thursday (Indian Time) announced a 27% reciprocal tariff on Indian goods.

While announcing plans for sweeping “Liberation Day" tariffs, Trump said that Prime Minister Narendra Modi is a great friend of his and noted that the US had not imposed tariffs on India for many years.

Along with India, the US will now impose a 34% import tax on Chinese goods, 20% on imports from the European Union, 25% on South Korean products, 24% on Japanese goods, and 32% on Taiwanese imports. The President also declared a 10% baseline tax on imports from all countries and higher tariff rates on nations that run trade surpluses with the United States.

“I will sign a historic Executive Order instituting reciprocal tariffs on countries throughout the world. Reciprocal that means: they do it to us, and we do it to them," he said at the Make America Wealthy Again Event.

Trump further imposed a 25% tariff on all foreign-made automobiles. While pointing out the disparity in motorcycle tariffs, he stated that while the United States imposes only a 2.4% tariff, countries like India and Vietnam charge significantly higher rates at 70% and 75%, respectively.

“Such horrendous imbalances have devastated our industrial base and put our national security at risk. I don’t blame these other countries at all for this calamity. I blame former presidents and past leaders who weren’t doing their job… Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles," he said.

Trump has said his reciprocal tariff plans are a move to equalise generally lower US tariff rates with those charged by other countries and counteract their non-tariff barriers that disadvantage US exports.

“India imposes their own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India. If these barriers were removed, it is estimated that US exports would increase by at least $5.3 billion annually," the White House said in a statement.

Washington D.C., United States of America (USA)

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