Washington, D.C.: US President Donald Trump has announced that reciprocal tariffs on countries including India, China, Mexico, Canada, Brazil, and the European Union will take effect from April 2, calling the current trade system "very unfair" to the United States.

Speaking at his first address to a Joint Session of Congress in his second term, Trump emphasized that these tariffs would be imposed on nations that charge the US higher duties on its exports, ensuring a "fair" trade balance.

“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” Trump declared on Tuesday night.

Trump Targets India Over High Auto Tariffs

Trump specifically called out India for its high tariffs on American cars, saying:

“India charges us auto tariffs higher than 100%. That’s very unfair.”

This statement comes just weeks after Trump warned Prime Minister Narendra Modi that India would not be exempted from Washington’s reciprocal tariff policy.

Why Is Trump Imposing Reciprocal Tariffs?

According to Trump, many of America’s trading partners charge significantly higher tariffs on US goods, compared to what the US charges them. He cited examples:

China’s tariffs on US products are twice as high as US tariffs on Chinese goods.
South Korea’s average tariff is four times higher, despite receiving military and economic assistance from the US.
The European Union, Canada, and Mexico impose higher import duties on US goods, making trade unfairly skewed.

“This system is not fair to the United States. It never was,” Trump asserted.

How Will Reciprocal Tariffs Work?

Trump made it clear that the US will impose the same tariffs on other countries as they impose on American goods.

If another country charges higher tariffs on US goods, the US will match them.
If a country imposes non-monetary trade barriers, the US will restrict their access to its market.
Tariffs will apply to all nations that have trade imbalances with the US.

“They don’t even allow us in their market. We will take in trillions and trillions of dollars, creating jobs like we have never seen before.”

Trump also claimed that his administration had successfully imposed tariffs on China in his first term, making it impossible for the Biden administration to reverse them because of the huge revenue gains.

Trump’s Strongest Trade Warning Yet

Trump’s speech signals a major escalation in global trade tensions, with India and China among the biggest targets.

“We have been ripped off for decades by nearly every country on Earth, and we will not let that happen any longer,” Trump declared.

With April 2 approaching, global markets and trade partners—including India—will be watching closely to see how these tariffs impact bilateral trade relationships and economic growth.

What are reciprocal tariffs?

• Reciprocal tariffs mean that the US will impose the same tariff rate on another country as that country imposes on US goods.

When will these tariffs take effect?

• The new US tariffs will be implemented from April 2, 2025.

Why is Trump targeting India with tariffs?

• Trump has criticized India’s high import duties on American goods, particularly automobiles with tariffs above 100%.

How will this affect US-India trade relations?

• India may face higher export costs to the US, potentially affecting key industries like auto, pharmaceuticals, and IT services.

Could these tariffs spark a global trade war?

• Yes, countries like India, China, Mexico, and Canada may retaliate with their own tariffs, leading to economic uncertainty and market volatility.