New Delhi: In a move aimed at rebalancing international trade, US President Donald Trump has announced a comprehensive package of tariffs targeting major trade partners. At the center of this strategy is a 26% “discounted reciprocal tariff” on India, part of a broader effort to address long-standing trade imbalances. These tariffs, set to take effect in early April, reflect a broader shift in US trade policy, emphasizing what Trump terms “reciprocity.”
The tariffs announced include a 26% duty on Indian imports and a 34% duty on those from China. These rates are described as “discounted” because they were set based on what Trump referred to as half the amount that these countries charge on US imports. For instance, Trump referenced India’s high auto tariffs when explaining the measure, noting a previous conversation with Prime Minister Narendra Modi where he expressed concerns about unfair trade practices.
In addition to these tariffs, the European Union will face a 20% levy on its imports, while the UK will incur a 10% tariff. Japan is set to encounter a 24% tariff on its exports to the US. These tariffs will be imposed on top of a baseline 10% import duty on all foreign goods entering the US. The baseline tariff starts on April 5, with the specific country tariffs following on April 9.
The announcement was framed as part of a celebration Trump labeled as “Liberation Day,” which took place at the White House Rose Garden. Here, Trump emphasized that the era of other countries taking advantage of US trade policies is over, and the new measures are intended to protect American industries and create jobs.
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