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“I’ll be announcing that next week — on reciprocal trade — so that we’re treated evenly with other countries. We don’t want any more or any less,” Trump told reporters in the Oval Office.
Trump made the announcement during a meeting with visiting Japanese Prime Minister Shigeru Ishiba on Friday and said the action would affect “everyone,” without specifying exactly what measures he plans to take, according to the Bloomberg.
With Tesla CEO Elon Musk becoming part of the administration, Trump said that imported automobiles, in particular, may attract additional tariffs. “That’s always on the table, it’s a very big deal,” he said. “We have to equalise it.”The announcement may weigh on investor sentiment in the Indian equity and currency markets on Monday. Bharat Forge, Samvardhana Motherson, and MM Forgings are some listed companies that supply class 8 trucks to the North American auto market.
For instance, Bharat Forge makes about a sixth of its standalone revenue from North America, according to a Morgan Stanley estimate. The stock has lost over 12% value since the start of the year.
India is planning to review import tariffs on over 30 items, including luxury cars and solar cells, after US pressure, sources told Reuters, ahead of Modi’s visit to the US. Easing entry for the likes of Tesla into India may hurt the prospects for the likes of M&M. Crude oil, nuclear reactors, and pearls are some of the other major imports from the US.
At a White House press conference later on Friday Trump suggested that the reciprocal tariffs could come in lieu of the 10-20% universal import duty plan at the center of his economic message during the campaign. The threat of reciprocal tariffs may also weigh on IT stocks like TCS, Infosys, and Wipro.
More than half (56%) of India’s software exports go to the US and Canada, according to an estimate by the Reserve Bank of India for the financial year ended March 2023.
First Published: Feb 8, 2025 7:16 AM IS
