Early Thursday morning, U.S. President Donald Trump announced a broad set of reciprocal tariffs on multiple nations with trade surpluses against the United States, including India. Under the new policy, these countries will be subjected to tariffs equal to half of what they impose on U.S. goods. As a result, India will now face a 26% tariff on all its exports to the U.S.
Following two weeks of mounting tensions in the global economy, Trump implemented these tariffs on both allies and rivals. With the new measure in place, Indian goods entering the U.S. will now be taxed at a rate of 26%.
Trump’s Chart
During his speech at the White House, Trump presented a chart that outlined various countries’ tariff rates on U.S. products and the corresponding levies they would now incur. These additional charges will be imposed on top of the existing 10% baseline tariff applicable to all imports entering the United States.
“India, very, very tough. Prime Minister (Narendra Modi) just left. He’s a great friend of mine. But I said, ‘You’re a friend of mine, but you’re not treating us right.’ They charge us 52 percent, but we charged them almost nothing for years—decades. And it was only seven years ago that I came in,” Trump stated.
India Faces a Lesser Impact Compared to Others
Despite the new tariffs, India is not among the countries hit hardest by Trump’s latest trade move. Several nations will be subjected to even higher tariff rates:
- Cambodia: 49%
- Sri Lanka: 44%
- Bangladesh: 37%
- Thailand: 36%
- China: 34%
- Taiwan: 32%
- Indonesia: 32%
- Switzerland: 31%
- South Africa: 30%
- Pakistan: 29%
Meanwhile, Canada and Mexico, the U.S.’s two largest trading partners, are already facing a 25% tariff on various goods.
Making America Wealthy Again?
During an event held at the White House under the theme “Make America Wealthy Again,” Trump described the decision as “our declaration of independence.” He asserted, “Taxpayers have been ripped off for more than 50 years. But it’s not going to happen anymore.”
By imposing these reciprocal tariffs on trading partners, Trump fulfilled one of his key campaign pledges. He bypassed congressional approval by leveraging the 1977 International Emergency Economic Powers Act to enforce the new trade measures.
Trump declared that the tariffs, which he introduced on what he referred to as “Liberation Day,” aim to strengthen U.S. manufacturing and penalize nations that he claims have long engaged in unfair trade practices.
The White House confirmed that the new tariffs would take effect immediately following Trump’s announcement.