In a dramatic policy shift, US President Donald Trump has announced a 26% “discounted reciprocal tariff” on India, slashing by half the 52% levies India imposes on American goods. Declaring April 2, 2025, as “Liberation Day” for American industry, Trump emphasized that his administration was reclaiming America’s economic destiny and putting an end to what he described as decades of foreign exploitation.
Speaking from the Rose Garden at the White House, Trump railed against countries that, according to him, have “looted, pillaged, and plundered” America through unfair trade practices. He accused foreign leaders of stealing US jobs and American industries, stating, “For decades, our country has been ransacked by both friends and foes alike.”
Trump signed an executive order instituting reciprocal tariffs on multiple nations, including India, China, the European Union, Japan, and South Korea. Holding up a chart displaying tariff disparities, he singled out India as “very, very tough”, accusing the country of erecting severe trade barriers against American products.
Referring to Prime Minister Narendra Modi, Trump remarked, “He’s a great friend of mine, but I told him—‘You’re not treating us right.’” He pointed out that while India levies a 52% tariff on American goods, the US has historically imposed almost nothing in return. Justifying his decision, Trump stated, “We charge them almost nothing, and they charge us 52%. That ends today.”
The move follows Modi’s February visit to Washington, where the leaders discussed the $100 billion US-India trade deficit. Trump, who previously labeled India the “tariff king”, insisted that India must agree to a fairer trade deal or face consequences. He accused past administrations of failing to address trade imbalances and vowed to correct them under his leadership.
Trump also took a dig at India’s automotive and motorcycle tariffs, highlighting that the US charges just 2.5% on foreign-made automobiles, while India imposes a 70% duty on American vehicles. “It’s impossible to sell into India because of their extreme tariffs,” he asserted, vowing to change the dynamics of US-India trade.
Despite the aggressive stance, Trump claimed that the US was being “kind” to India, as the new tariffs were only half of what India charges America. He warned that stronger actions could have been taken but were avoided to maintain diplomatic relations.
With the 2025 election cycle in full swing, Trump’s hardline trade stance is expected to be a major talking point. The tariffs are already drawing mixed reactions, with Indian officials expressing concern over escalating trade tensions. As the US-India economic relationship faces its biggest test yet, the world watches to see if this latest move leads to negotiations—or a full-blown trade war.
