Trump Imposes 26% 'Discounted' Tariffs On India
Trump announced a 26% tariff on Indian imports, citing India’s higher tariffs on American goods, while also imposing new duties on other major economies, including China and the EU.
In a major protectionist move, President of the United States Donald Trump announced a 26% tariff on Indian imports, citing the country's higher tariff rates on American goods.
Speaking at the Rose Garden on "Liberation Day" Wednesday, Trump declared that the measures were part of his broader push to "make America wealthy again."
Trump described his new tariff policy as “kind reciprocal” during his Rose Garden speech. He stated that countries can avoid tariffs by manufacturing products in the US.
“If you want your tariff rate to be zero, then you build your product right here in America,” he said.
According to the American President, India's tariff rate on US imports stands at 12%, significantly higher than the US imposed rate of 3%. The newly imposed 26% duty aims to correct this imbalance under what Trump calls a "reciprocal" trade strategy.
India was not the only nation hit with new levies. The US also set a 10% baseline tariff on all countries and imposed a 25% duty on foreign automakers, a move Trump justified by pointing to high tariffs from countries like India, Vietnam, and Thailand on American auto exports. The tariff applies to auto components, unassembled vehicles, and fully imported cars.
The tariffs take effect at midnight EST on Thursday, marking one of the most aggressive trade moves in recent history. With India being a key trade partner of the US, the new duties could significantly impact bilateral trade, especially in sectors like automobiles, textiles, and industrial goods.
