US President Donald Trump vowed to overhaul the country’s trade system and would impose tariffs and taxes on foreign countries to protect Americans. But would Trump’s tariff plans affect India, which he once called the “king of tariffs”?
US President Donald Trump on Monday said he would impose tariffs and taxes on “foreign countries” “to enrich” Americans and said he will create an “external revenue service” to collect “massive amounts” of duties and other revenues from foreign sources.
Speaking at his inauguration, Trump said he would immediately begin overhauling the US’s trade system to protect Americans. However, he did not mention specific tariff plans in his inaugural address.
Trump, who took office on Monday, has pledged tariffs of 10 per cent on global imports, 60 per cent on Chinese goods and a 25 per cent import surcharge on Canadian and Mexican products, Reuters reported. In the case of Canada and Mexico, Trump warned of imposing tariffs on these countries if they failed to stop illegal immigration into the US and crack down on drug cartels.
Trump’s pledge to implement a trade policy of “tariff and tax” on other countries, also has significant implications for countries like India, which currently imposes significant tariffs on certain US products. But would Trump’s tariff plans for countries affect India, which he once called the “king of tariffs”?
TRUMP’S TARIFF THREATS ON INDIA
The 78-year-old Republican leader has, in the past, repeatedly criticised countries, including India, for imposing high tariffs on US products. He warned if countries like India charge high tariffs on US goods, Washington would reciprocate with similar tariffs on Indian imports.
In December last year, Trump made it clear that his administration would adopt a tit-for-tat approach, saying, “If they tax us, we tax them the same amount.”
“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.
Trump’s stance is rooted in his “America First” trade policy, aimed at protecting American workers and families. He said in his inauguration address that his policies would make the US a “a manufacturing nation once again”.
A Trump administration official said the President will issue a broad trade memo on Monday that stops short of imposing new tariffs on his first day in office, but rather directs federal agencies to evaluate US trade relationships with China, Canada and Mexico, The Wall Street Journal reported.
TRUMP’S TARIFF WARNING OVER ‘BRICS CURRENCY’
In December last year, Trump also threatened a 100 per cent tariffs on BRICS nations, including India, if they attempted to develop its common currency to replace the US dollar and said they “should say goodbye to America” and “should find another sucker”.
Trump’s 100 per cent tariff warning to Brics nations came after the bloc’s members met in Russia’s Kazan in October where they discussed boosting non-dollar transactions. His warning drew a cautious response from External Affairs Minister S Jaishankar, who said it was highly likely that the BRICS members would continue to be involved in global trading by using their own currencies.
“The whole idea is, many of them say, ‘Why do I need a third currency between us?’ which is completely understandable. Sometimes it’s a liquid issue. Sometimes it’s a cost issue and it’s an efficiency issue,” he said in August last year.
The US was India’s top trading partner in 2021-2022 and 2022-2023. However, in 2023-2024, China became India’s largest trading partner.
In the January-July 2024 period, however, the US reclaimed its position as India’s largest trading partner with bilateral goods trade surpassing USD 72 billion and Indian exports growing to USD 48.2 billion, according to reports.
Article source: indiatoday.in
