Trump Announces 26% ‘Discounted’ Tariff on India in Sweeping Trade Move
US President Donald Trump unveiled a new set of ‘discounted’ reciprocal tariffs on Wednesday, targeting multiple countries, with India facing a 26% levy on its imports. Describing the policy as a “kind reciprocal” gesture, Trump emphasized that the tariffs effective from April 9 aim to address trade imbalances, sparking concerns among Indian exporters even as the White House hailed it as a step toward economic independence.
Speaking at a White House press conference, Trump labeled April 2 as ‘Liberation Day’ for American trade, announcing a baseline 10% tariff on all imports alongside higher rates for nations with significant trade deficits. India’s 26% tariff reflects roughly half of the 52% duties it imposes on US goods, as shown in a chart Trump presented.
The reciprocal tariffs, ranging from 10% to 49% across countries, will kick in at 12:01 am on April 9, a senior White House official told Reuters. A separate 25% tariff on foreign-made automobiles will begin on April 3.
Recalling Prime Minister Narendra Modi’s February visit, Trump called him a “great friend” but pointed to India’s trade practices. “They charge us 52%, but we charged them almost nothing for years. That changed seven years ago when I came in,” he said, underscoring the need for fairness in trade relations.
He urged countries to manufacture in the US to avoid tariffs, stating, “If you want your tariff rate to be zero, build your products in America.”
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The policy includes a 34% tariff on China, 20% on the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan. Trump signed an executive order to formalize the tariffs, calling them a “declaration of economic independence” after decades of what he termed a “rip-off” by trading partners.
“In many cases, the friend is worse than the foe in trade. Trade deficits are a national emergency,” he added, framing the move as a boost for American growth.
The announcement has raised concerns among Indian exporters, particularly in sectors like automobiles, gems, and pharmaceuticals. Markets reacted with unease, though an SBI Research report suggested a limited impact, predicting a 3-3.5% dip in exports.
The report highlighted India’s diversified export mix and growing manufacturing and service sectors as buffers against the tariffs. New supply chain routes via Europe and the Middle East were also noted as strengths. US-India Trade Talks in Focus
Ahead of the announcement, Commerce Minister Piyush Goyal visited Washington to negotiate a potential bilateral trade agreement (BTA). Both nations aim to finalize a deal by year-end, targeting $500 billion in bilateral trade by 2030.
While no exemptions were confirmed, Goyal’s discussions signal India’s efforts to mitigate the tariff blow and strengthen economic ties with the US.
Trump defended the tariffs as a long-overdue fix. “For years, American citizens watched other nations prosper at our expense. Now it’s our turn,” he said, promising growth and jobs through the policy.
He acknowledged the tariffs might be “tough for a lot of countries” but insisted they were kinder than fully reciprocal rates, which he could have imposed.
