Donald Trump Announces 26% ‘Discounted Reciprocal Tariff’ On Indian Goods

Last Updated:April 03, 2025, 02:41 IST

Trump said that Prime Minister Narendra Modi is a great friend of his and noted that the US had not imposed tariffs on India for many years.

Signalling a tougher stance on trade policies, US president Donald Trump on Thursday (Indian Time) announced a 26% reciprocal tariff on Indian goods.

While announcing plans for sweeping “Liberation Day” tariffs, Trump said that Prime Minister Narendra Modi is a great friend of his and noted that the US had not imposed tariffs on India for many years.

Along with India, the US will now impose a 34% import tax on Chinese goods, 20% on imports from the European Union, 25% on South Korean products, 24% on Japanese goods, and 32% on Taiwanese imports. The President also declared a 10% baseline tax on imports from all countries and higher tariff rates on nations that run trade surpluses with the United States.

“I will sign a historic Executive Order instituting reciprocal tariffs on countries throughout the world. Reciprocal that means: they do it to us, and we do it to them,” he said at the Make America Wealthy Again Event.

Trump further imposed a 25% tariff on all foreign-made automobiles. While pointing out the disparity in motorcycle tariffs, he stated that while the United States imposes only a 2.4% tariff, countries like India and Vietnam charge significantly higher rates at 70% and 75%, respectively.

“Such horrendous imbalances have devastated our industrial base and put our national security at risk. I don’t blame these other countries at all for this calamity. I blame former presidents and past leaders who weren’t doing their job… Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles,” he said.

Trump has said his reciprocal tariff plans are a move to equalise generally lower US tariff rates with those charged by other countries and counteract their non-tariff barriers that disadvantage US exports.

Location :

Washington D.C., United States of America (USA)