Earlier, White House Press Secretary Karoline Leavitt had said, “We do not know if India will be specifically targetted in this—though India is one of the countries that have the highest tariffs when it comes to US trade partners.”
Since Trump’s inauguration on January 20, reciprocal tariffs have become an integral part of the new administration, as promised during the US presidential election campaign.
“Very simply, it’s if they charge us, we charge them,” Trump said Sunday, explaining why he intends to enact reciprocal tariffs.Tariffs play a significant role in President Trump’s strategy to generate revenue for extending his 2017 tax cuts and implementing additional tax cuts.
Developing countries, such as India, Brazil, Vietnam, and other Southeast Asian and African nations, are expected to be most affected by these tariffs due to the substantial differences in tariff rates between their imports from the US and what the US charges them.
For example, in 2022, the average tariff rate on US imports from India was 3%, while India’s average tariff rate on imports from the US was 9.5%, according to World Bank data.
As Trump is set to meet with Modi on Thursday, there is a possibility that the two leaders might reach an agreement to avoid or postpone new tariffs on Indian exports to the US.
Last year, India exported $87 billion worth of goods to the US, while the US exported $42 billion worth of goods to India, as per Commerce Department data.
The reciprocal tariffs come on top of the 10% across-the-board tariff implemented last week, additional tariffs on Chinese goods, and the stricter 25% tariffs on steel and aluminum announced by Trump on Monday.
