United States President Donald Trump on Wednesday described Prime Minister Narendra Modi as a "great friend" while announcing a 26% tariff on Indian imports. However, he said, "You're a friend of mine, but you're not treating us right." Trump claimed that the move was a "discounted reciprocal tariff" aimed at countering India's high duties on American goods.
Also Read: India to face 'discounted' 26% tariff from US; Trump slaps 34% on China
"India, very, very tough. Very, very tough. The Prime Minister just left. He's a great friend of mine, but I said, 'You're a friend of mine, but you're not treating us right.' They charge us 52 per cent. You have to understand, we charge them almost nothing, for years and years and decades," Trump said, holding a chart listing countries and their tariff rates.
He argued that the US had long tolerated unfavourable trade terms and had only started imposing tariffs on China after he took office seven years ago. "It was only seven years ago, when I came in, we started with China and we took in hundreds of billions of dollars from China in tariffs," he said.
The announcement comes just weeks after Modi’s visit to Washington, D.C., in February, less than a month after Trump began his second term in the White House. Trade tensions between the two countries have been a longstanding issue, with Trump previously calling India the "tariff king" and a "big abuser" in global trade.
During a joint press conference with Modi at the White House on February 13, Trump said, "India has been very strong on tariffs. I don't blame them, necessarily, but it's a different way of doing business. It's very hard to sell into India because they have trade barriers, very strong tariffs."
Also Read: Trump's 26% tariffs put pressure on India. Is New Delhi ready for the impact?
Pointing to the US trade deficit with India, which he estimated at nearly $100 billion, Trump said that he and Modi had agreed to start negotiations to correct "long-running disparities that should have been taken care of over the last four years – but they didn't do that." He said both sides would work toward "a level playing field, which we really think we're entitled to, and he does also, in fairness, so we're going to work on that very hard."
The US President framed the latest tariffs as part of a broader effort to address what he views as unfair trade policies. He defended the move by saying the US had been "very kind" to trading partners and that the new tariffs would amount to "approximately half of the levies they impose on US goods."
The Indian commerce ministry is analysing the impact of the 26% reciprocal tariffs imposed by the US, a senior government official said on Thursday, accordin to PTI. According to the official, the universal 10% tariff will come into effect on all imports into the US from April 5, with the remaining 16% to be applied from April 10. While the government is assessing the potential consequences, the official described the situation as a "mixed bag" rather than an outright setback for India.
Also Read: Govt analysing impact of 26% Trump tariff on India
India and the US are already in negotiations over a bilateral trade agreement. Both countries are working towards finalising the first phase of the deal by fall (September-October) this year.
The tariffs on India are part of a wider set of measures impacting several major economies. China, which has been a key target of US trade actions, will now face a 34% tariff, while the European Union will see a 20% levy. Vietnam, a rising force in global trade, will be hit hardest with a 46% tariff on its exports to the US.
Other countries facing US tariffs include South Korea (25%), Japan (24%), and Taiwan (32%). The United Kingdom will see a 10% tariff, while Switzerland—another key US trading partner—will be subject to a 34% duty.
Also Read: India to face 'discounted' 26% tariff from US; Trump slaps 34% on China
"India, very, very tough. Very, very tough. The Prime Minister just left. He's a great friend of mine, but I said, 'You're a friend of mine, but you're not treating us right.' They charge us 52 per cent. You have to understand, we charge them almost nothing, for years and years and decades," Trump said, holding a chart listing countries and their tariff rates.
#Trump #TradeWar: US President announces 26% of 'discounted #reciprocal #tariff' on #India 🗽 https://t.co/8B98turPK5 🇮🇳 pic.twitter.com/5kVDoXguW5
— Economic Times (@EconomicTimes) April 3, 2025
He argued that the US had long tolerated unfavourable trade terms and had only started imposing tariffs on China after he took office seven years ago. "It was only seven years ago, when I came in, we started with China and we took in hundreds of billions of dollars from China in tariffs," he said.
The announcement comes just weeks after Modi’s visit to Washington, D.C., in February, less than a month after Trump began his second term in the White House. Trade tensions between the two countries have been a longstanding issue, with Trump previously calling India the "tariff king" and a "big abuser" in global trade.
During a joint press conference with Modi at the White House on February 13, Trump said, "India has been very strong on tariffs. I don't blame them, necessarily, but it's a different way of doing business. It's very hard to sell into India because they have trade barriers, very strong tariffs."
Also Read: Trump's 26% tariffs put pressure on India. Is New Delhi ready for the impact?
Pointing to the US trade deficit with India, which he estimated at nearly $100 billion, Trump said that he and Modi had agreed to start negotiations to correct "long-running disparities that should have been taken care of over the last four years – but they didn't do that." He said both sides would work toward "a level playing field, which we really think we're entitled to, and he does also, in fairness, so we're going to work on that very hard."
The US President framed the latest tariffs as part of a broader effort to address what he views as unfair trade policies. He defended the move by saying the US had been "very kind" to trading partners and that the new tariffs would amount to "approximately half of the levies they impose on US goods."
The Indian commerce ministry is analysing the impact of the 26% reciprocal tariffs imposed by the US, a senior government official said on Thursday, accordin to PTI. According to the official, the universal 10% tariff will come into effect on all imports into the US from April 5, with the remaining 16% to be applied from April 10. While the government is assessing the potential consequences, the official described the situation as a "mixed bag" rather than an outright setback for India.
Also Read: Govt analysing impact of 26% Trump tariff on India
India and the US are already in negotiations over a bilateral trade agreement. Both countries are working towards finalising the first phase of the deal by fall (September-October) this year.
The tariffs on India are part of a wider set of measures impacting several major economies. China, which has been a key target of US trade actions, will now face a 34% tariff, while the European Union will see a 20% levy. Vietnam, a rising force in global trade, will be hit hardest with a 46% tariff on its exports to the US.
Other countries facing US tariffs include South Korea (25%), Japan (24%), and Taiwan (32%). The United Kingdom will see a 10% tariff, while Switzerland—another key US trading partner—will be subject to a 34% duty.
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