Trump Announces ‘Reciprocal Tariffs’ Across The Globe: Here’s How It Will Impact India & Other Countries

President Donald Trump on Thursday further disrupted the global trade system by announcing reciprocal tariffs on other nations, a move aimed at aligning US import tariffs with the tax rates imposed by other countries.

Trump Declares Equal Tariffs on Imports

Trump announced while speaking to reporters, stating that the US would match tariffs imposed by other countries.

“I will charge a reciprocal tariff. Any country that charges the US a tariff will receive tariffs of the same amount. No more or less. In other words, if they charge us tax or tariffs, we will charge them the same tax or tariffs. Very simple,” he said.

The move was announced just hours before Trump was set to meet Indian Prime Minister Narendra Modi at the White House. Later, Trump also stated that India imposes higher tariffs than any other country.

Executive Action and Implementation Timeline

Trump’s reciprocal tariff policy was enacted via executive action on Thursday, though a delayed implementation was built in to allow nations time for potential trade negotiations with the US, a White House official confirmed.

Tariffs are taxes levied on imported goods, which can significantly impact trade relationships between countries.

Trump’s Long-Standing Stance on Tariffs

During his presidential campaign, Trump frequently advocated for reciprocal tariffs. He previously stated, “If India, China, or any other country hits us with a 100 or 200 per cent tariff on American-made goods, we will hit them with the same tariff. If they charge us, we charge them — an eye for an eye, a tariff for a tariff, same amount.”

Recently, he suggested that the detailed order would be issued by Wednesday or Thursday, adding that “every country will be reciprocal” in its trade policies.

How Will India Be Impacted?

The ripple effects of Trump’s reciprocal tariff policy are expected to be felt across the globe. Countries like India and Thailand, which impose higher tariffs on U.S. imports, are likely to face the most significant impact.

However, nations with free trade agreements with the U.S., such as Mexico, Canada, and South Korea, may be largely unaffected, according to Goldman Sachs.

Higher Costs and Retaliation

The policy could lead to a major tax hike, particularly for American consumers and businesses. With the U.S. importing $4.1 trillion worth of goods last year, the increased tariffs could drive up costs for a wide range of products.

Additionally, the move risks triggering retaliation from trade partners, potentially destabilising global markets and altering America’s relationships with both allies and competitors.

What Are Reciprocal Tariffs?

Tariffs are taxes applied to goods imported from other countries. While the term “reciprocal tariffs” lacks an official definition in international trade, Trump has used it to describe a policy aimed at aligning U.S. customs duties with those of its trading partners. The goal is to ensure that the U.S. is not subjected to higher tariffs than it imposes on others.

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