Trump Announces Reciprocal Tariffs on India Starting April 2 in US Congress Address

During his first address of his second term to a joint session of Congress, US President Donald Trump strongly defended his administration's stringent tariff policies. He argued that the United States has long been subjected to high tariffs by several nations, including India. Trump announced that starting April 2, his administration would impose reciprocal tariffs on multiple countries.

Trump highlighted that several nations, such as India, impose substantial tariffs on US goods. “On average, the European Union, China, Brazil, India, Mexico, and Canada… have you heard of them? These and countless other countries impose significantly higher tariffs on us than we impose on them,” he stated. Calling the situation “very unfair,” he emphasized the need for corrective action.

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India’s High Auto Tariffs

Specifically addressing India’s trade practices, Trump pointed out, “India charges us auto tariffs higher than 100 percent.”

He further warned that under his administration, companies manufacturing products outside the United States would face tariffs—some of which could be quite substantial. “Other countries have used tariffs against us for decades. Now, it’s our turn to start using them in response,” he added.

Reciprocal Tariffs to Take Effect from April 2

Trump declared that beginning April 2, the US would introduce reciprocal tariffs on multiple nations. He intentionally avoided April 1 to prevent any association with April Fools’ Day.

“I wanted to set it for April 1 but didn’t want it mistaken for an April Fools’ joke… This is serious money. On April 2, reciprocal tariffs will take effect—whatever tariffs they impose on us, we will impose on them. If they use non-monetary trade barriers to restrict our market access, we will respond with similar measures to limit their access to our market,” he asserted during his congressional address.

Economic Impact of the Policy

Trump claimed this move would help the US generate substantial revenue and significantly boost employment. “We will take in trillions of dollars and create jobs like never before. I did it with China and others, and the Biden administration was powerless to stop it,” he declared.

What Are Reciprocal Tariffs?

Reciprocal tariffs are trade duties imposed by one country on another to mirror the tariff rates set by the latter. These countermeasures ensure that imported goods from a specific country face equivalent taxation in response to that country’s tariffs.

If the US enforces reciprocal tariffs on India, Indian-made goods will become more expensive in the US market due to increased import duties. As a result, Indian exports may become less competitive, reducing their appeal to American consumers.