The White House on Wednesday has said India's high tariffs and trade barriers increase costs for US exports, citing disparities in tariff rates between the two countries.
India imposes a 70% tariff on passenger vehicle imports with internal combustion engines, while the US applies a 2.5% tariff, The White House said in a statement, adding that networking switches and routers face a 10-20% tariff in India, whereas the US imposes none.
India levies an 80% tariff on rice in the husk, compared to the US rate of 2.7%, it noted, adding, Apple imports to India are subject to a 50% tariff, while the US allows duty-free entry.
India's simple average most-favoured-nation tariff rate stands at 17%, compared to 3.3% in the US, the White House said.
India also enforces its own testing and certification requirements in sectors like chemicals, telecom products, and medical devices, which the White House says makes it difficult for US companies to sell products in the country. The US estimates that removing these trade barriers could increase its exports to India by at least $5.3 billion annually.
In response to these disparities, President Donald Trump announced a 26% tariff on Indian imports, citing India's higher tariff rates on US goods. Speaking at the Rose Garden on “Liberation Day” Wednesday, Trump said the measures were part of his push to “make America wealthy again.”
Trump described the policy as “kind reciprocal” and said countries could avoid tariffs by manufacturing in the US. On Monday, he said India would “drop its tariffs very substantially” as he prepared to announce reciprocal tariffs. He cited the European Union's move to cut car tariffs to 2.5% and said many countries would lower tariffs in response.
“They've been unfairly tariffing the United States for years,” he said, adding that the US has maintained relatively low tariffs.
Trump has previously criticised this imbalance, calling India the “tariff king” during his first term.
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