News Brief

"India Charges A Lot": Trump Vows Reciprocal Tariffs To Counter High Indian Import Duties

Kuldeep Negi

Dec 18, 2024, 08:33 AM | Updated 08:33 AM IST


US President-elect Donald Trump with Prime Minister Narendra Modi
US President-elect Donald Trump with Prime Minister Narendra Modi

US President-elect Donald Trump has pledged to impose equivalent tariffs on India if it maintains high taxes on American imports.

Speaking from his Mar-a-Lago resort on Monday, Trump expressed dissatisfaction with India's 100 per cent tariff on select US products.

Trump outlined a tit-for-tat policy for trade, stating, "If they tax us, we tax them the same amount."

His comments signalled a shift to a more aggressive trade stance towards India, which he criticised alongside Brazil for imposing what he termed "high tariffs" on US goods.

Trump's comments came as part of a broader conversation about trade relations with major US partners, including China, Mexico, and Canada.

"The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200. India charges a lot," he said, India Today reported.

"India charges a lot. Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing," Trump said.

The US-India trade relationship, often strained over tariff disputes, faces a new challenge as Trump’s remarks ahead of his inauguration indicate a tougher approach.

Trump's response came in response to a query about potential trade deals, particularly with China, a nation he frequently criticised for unfair trade practices.

The US President-elect extended his tough stance on trade to China, Mexico, and Canada, declaring that reciprocal tariffs would form a core part of his economic policy.

Trade relations with Mexico and Canada remain fraught, especially on issues surrounding border security and drug trafficking.

Trump reiterated his plan to impose a 25 per cent tariff on all imports from Canada and Mexico unless both countries take action to address the flow of illegal drugs, including fentanyl, and the movement of migrants across the US borders.

Such measures could strain the US-Mexico-Canada Agreement (USMCA), potentially impacting trade among North American neighbours.

In response to Trump’s warnings, Canada announced a 1.3 billion Canadian dollar investment in border security to curtail migrant and drug flow, according to news agency Reuters.

The initiative includes expanding powers for Canadian border services to inspect exports heading to the US.

Canada's decision comes amidst a rise in migrant detentions at the Canada-US border, which surged to over 23,000 in the past year, up from 10,000 previously.

Canadian officials are enhancing surveillance and deploying additional personnel to manage these challenges but admit their limited capacity to prevent crossings into the US.

Also Read: BJP To Issue Notices To Over 20 MPs Absent During Tabling Of 'One Nation One Election' Bill In Lok Sabha

Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.


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