3 weeks ago
Last Updated:February 14, 2025, 01:49 IST
US President Trump announced reciprocal tariffs on countries and said allies have hurt US with tariffs more than its enemies.
US President Donald Trump
US President Donald Trump announced ‘reciprocal tariffs’ on countries hours before meeting Prime Minister Narendra Modi in Washington on Thursday. Speaking of tariffs with respect to India, Trump, according to Reuters, said: “India has more tariffs than nearly any other country".
“We will charge them no more, no less. They charge the US tax or tariff, and we will charge them the exact tax and tariff, very simple," Donald Trump said while signing the executive order.
He also said that US allies are worse than US’ enemies when it comes to tariffs as well.
The levies would be tailored to each US trading partner and consider non-tariff factors including value-added tax (VAT).
“Major exporting nations of the world attack our markets with punishing tariffs and even more punishing non-tariff barriers," Trump trade advisor Peter Navarro told reporters, taking aim at the European Union in particular over VAT.
Washington will start by examining economies with which the United States has its biggest deficits or “most egregious issues," said a White House official.
“This should be a matter of weeks, in a few months, but not much longer than that," the official added, speaking on condition of anonymity.
Trump acknowledged Thursday that US prices “could go up" due to tariffs, but he expressed confidence that they would ultimately ease.
Trump has announced a broad range of tariffs targeting some of the biggest US trading partners since taking office, arguing that they would help tackle unfair practices — and in some cases using the threats to influence policy.
What are reciprocal tariffs?
Reciprocal tariffs were one of Donald Trump’s core campaign pledges- aimed at targeting foreign nations that place taxes on American goods and solve what he said are unfair trade practices.
He earlier said, “Very simply, it’s if they charge us, we charge them"- explaining why he intends to enact reciprocal tariffs.
What countries are expected to be hit by Donald Trump’s reciprocal tariffs?
White House press secretary Karoline Leavitt echoed Donald Trump’s message, saying, “This is something he believes strongly in, and it’s very simple logic as to why the president wants to impose reciprocal tariffs."
Reciprocal tariffs will be over and above the 10% across-the-board tariff that went into effect last week. Additionally, other tariffs have also been put in place by the US on Chinese goods and stricter 25% tariffs on steel and aluminum have been announced.
Will Donald Trump push for tariffs against India?
Donald Trump, while announcing, the reciprocal tariffs said that India has more tariffs than nearly any other country.
Tariffs are a key part of Donald Trump’s plan to raise revenue to pay for the extension of his 2017 tax cut which are over other promised tax cuts in the US. As Donald Trump is meeting PM Modi- who is on an official visit to the US- the two leaders could reach an agreement that avoids or delays new tariffs on Indian exports to the US. In 2024, India exported $87 billion worth of goods to the US, while the US exported $42 billion worth of goods.
A report by news agency AFP said reciprocal duties could bring a broad tariff hike to emerging market economies such as India and Thailand, which tend to have higher effective tariff rates on US products.
Countries such as South Korea that have trade deals with Washington are less at risk from this move, analysts believe.
Location :Washington D.C., United States of America (USA)
First Published:February 13, 2025, 20:28 IST
News world US President Donald Trump Announces Reciprocal Tariffs, Says 'Will Charge No More, No Less'
