America Imposes 26% Tariff on India: Trump Says Modi is a Good Friend but Tariff Policy is Unfair
Washington, 3 April – (www.deccanlive.com): U.S. President Donald Trump announced a 26% tariff on India late Wednesday night, calling it a “reciprocal tariff.” He stated that while Indian Prime Minister Narendra Modi is a good friend, India’s trade policies towards the U.S. are unfair.
Trump explained that since India imposes tariffs up to 52% on American goods, the U.S. will now charge India 26% in response. He clarified that the tariffs will not be completely reciprocal but will be set at about half the rate of what other countries impose on the U.S.
Apart from India, new tariffs have been set for several other countries, including:
- China – 34%
- European Union – 20%
- South Korea – 25%
- Japan – 24%
- Vietnam – 46%
- Taiwan – 32%
The U.S. has decided to impose lower tariffs compared to what these countries charge on American imports.
Additionally, a 10% baseline tariff will be applied to all imported goods entering the U.S. The baseline tariff will take effect on April 5, while the reciprocal tariffs will be implemented from April 9 at midnight. The baseline tariff is a general trade policy, while the reciprocal tariff is a direct response to other countries’ tariffs on U.S. goods.
Key Points from Trump’s Speech on Tariffs
25% Tariff on Auto Sector
- The U.S. will impose a 25% tariff on foreign-made vehicles.
- Until now, the U.S. charged only 2.4% tariff on imported motorcycles, whereas India charges 60%, Vietnam 70%, and other countries even more.
- Trump stated that these countries have “taken advantage” of the U.S. for 50 years, but this will end now.
America Will Become the Richest Country
- Trump claimed that the U.S. will be wealthier than any other nation.
- He emphasized standing up for American workers and implementing the “America First” policy.
- He believes the U.S. will become so rich that it will seem unbelievable.
Make Products in the U.S. to Avoid Tariffs
- The U.S. will now respond equally in trade matters.
- Countries that want access to the U.S. market will have to pay tariffs.
- If companies want exemption, they must manufacture their products in the U.S.
Jobs and Factories Will Return to the U.S.
- Many countries benefited from the U.S. market but imposed restrictions on American goods.
- Trump stated that the U.S. will now focus on its own economic benefits.
- He predicted that jobs and factories will move back to America.
Unfair Dairy Tariffs by Canada
- Trump criticized Canada’s dairy tariffs, calling them unfair to American farmers.
- He pointed out that the U.S. subsidizes industries in Canada and Mexico, but now it will also support its own farmers and livestock producers.
Economic Independence for America
- Trump declared this as the day of economic freedom for the U.S.
- He emphasized the “reciprocal tariff” policy, meaning the U.S. will impose the same tariffs on other countries as they impose on American goods.
- He reiterated his vision to “Make America Great Again.”
