US President Donald Trump announced sweeping universal tariffs in what’s seen as watershed moment in the world economy. In a grand ceremony with his full cabinet in attendance, Trump spoke for around 50 minutes. While announcing the most aggressive reciprocal tariff policy, Trump said that it will usher in a ‘golden age’ for America. India was among 50 nations that were hit by the tit-for-tat levies.
While mentioning India, Trump recalled his friendship with Prime Minister Narendra Modi and his Washington visit in February. However, he termed New Delhi as "very, very tough."
“The Prime Minister (Narendra Modi) just left. He’s a great friend of mine. I said: ‘You’re a great friend of mine but you’re not treating us right. They charge us 52%. You have to understand…we charge them almost nothing,” Trump said as he unveiled what he termed as ‘kind’ tariffs. “India charges us 52 per cent, so we will charge them half of that - 26 per cent,” Trump said at the White House ceremony. He called it a ‘discounted’ reciprocal tariff.
While speaking on automobile sector, Trump said that India charges 70 percent levies. The US President said that such practice has created a ‘horrendous imbalance’ and put America’s national security at risk. “I don’t blame these countries. I blame past leaders who were not doing their jobs…,” the US President added.
While the White House has said that the reciprocal tariffs will be over and above the universal 10 percent ‘baseline’ levy, Trump didn’t speak on the sectoral breakdown of how these ‘discounted’ tariffs will come into force. Citing ‘persistent trade deficits,’ the White House announced the tariff timeline from April 5. The 10 percent baseline tariff will kick in from April 5 and the country-based duties will come into force from April 9.
Among other nations facing ‘discounted reciprocal tariffs’ include Vietnam (46 per cent), China (34 per cent), Taiwan (32 per cent), Israel (17 per cent), Japan (24 per cent), United Kingdom (10 per cent), Pakistan (29 per cent), European Union (20 per cent), Bangladesh (37 per cent), Sri Lanka (44 per cent).
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