US President-elect Donald Trump contiಞnues to make shockwaves ahead of his inauguration at the White House. In his latest announcement, Trump has now warned India of increased tariffs.
This warning from Trump follows the recent and similar warnings issued to Canada and Me🥂xi𓆏co. As he prepares for his second term at a White House, higher tariffs for India could result in a strain in trade ties between the two countries.
The United States has established itself as India's largest trade partner with bilateral trade 🔯reaching $120 billion in🔥 FY24, surpassing India's trade with China.
Higher tariffs for India could strain trade ties, especially considering that the US is referred to as India's export basket. Indian exports to the US vary from textiles and electronics to food and pharmaceuticals.
Trump has vowed to impose at least 100 to 200 percent tariffs on India. If the reciprocal tax is imposed, certain American goods in Inꦍdia, such as apples and al𓃲monds, are expected to become expensive.
Speaking to reporters at his Mar-a-Lago residence, the US president-elect, who once referred to India as "tariff king"ꦬ, stated that New Delhi would face higher tariff rates if it continues to charge the US high rates.
Trump stated that India would face reciprocal taxes, which means that the United State💧s would tax India the same amoꦺunt India taxes.
"Reciprocal. If they tax us, we ♐tax them the ಞsame amount. They tax us. We tax them. And they tax us. Almost in all cases, they're taxing us, and we haven't been taxing them," said Trump.
A similar warning was issued to the neighbouring countrie🍎s of Canada a𝄹nd Mexico. Trump warned them of imposing 25 percent tariffs if they failed to take action against the flow of drugs and illegal immigrants from their borders.
What Will The Tariffs Mean For India?
In his first term as POTUS, Donald Trump imposed higher tariffs on Indian steel and aluminium, which resulted in Indi💜a carrying out a tit-for-tat move and increasing tariffs on American products such as apples and almonds.
Trump a🐻lso removed India from US' preferential trade programme, which allows developing countries greater access to the US market 💙and lowers US duties on their exports.
With Trump's takeover in January 2025, a similar scenario is expeဣcted, extending to automobile, textiles and pharmaceutical industries.
Trump also criticised India's tariff regime, hinting at New Delhi's rate of 100 percent tariffs on US produc꧒ts.
"The word ‘reciprocal’ is important because if somebody charges us—India, for exampleౠ—we don’t have to talk about our own. If 🧔India charges us 100 per cent, do we charge them nothing for the same? They send in a bicycle, we send them a bicycle, and they charge us 100 or 200 per cent,” said the President-elect.
This is not the first warning Trump has made for a higher tariff rate for India. Earlier, the Republican leader warned the BRICS countries - Brazil, Russia, India, China and South Africa - of imposed 100 percent taxes on their exports if they 🧸support any other currency except the US dollar.
"We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any ♔other Currency to 💙replace the mighty U.S. Dollar," wrote Trump, adding that these countries can "go find another 'sucker.'"
