US-India Trade War on Cards? Donald Trump Announces Reciprocal Tariffs, Says ‘Tit for Tat’ on Import Duties

Since taking office as the US President, Donald Trump has been in action mode, making major policy announcements. Addressing the US Congress in a joint session, Trump made a statement about India that has sparked global discussions. Many experts believe that a trade war is already underway. One of Trump's most significant decisions is to impose Reciprocal Tariffs on India starting April 2, 2025. The key question now is—will this be a major setback for India andPM Modi? Let’s break it down.

Donald Trump’s Statement in the Joint Session of US Congress

While addressing a joint session of the US Congress, Donald Trump strongly criticised unfair trade practices by several nations, including India. He said, "Other countries have used tariffs against us for decades, and now it is our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, and countless other nations charge us tremendously higher tariffs than we charge them. It is very unfair. India charges us auto tariffs at 100%."

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#WATCH | While addressing a joint session of US Congress, US President Donald Trump says, " Other countries have used tariffs against us for decades and now it is our turn to start using them against those other countries. On average, the European Union, China, Brazil,… pic.twitter.com/7lRu4udKEN

— ANI (@ANI) March 5, 2025

Trump further stated, "The system is not fair to the US. It never was. On April 2, Reciprocal Tariffs kick in, and whatever they tariff us, other countries, we will tariff them. Whatever they tax us, we will tax them. If they impose non-monetary tariffs to keep us out of their markets, then we will do the same to keep them out of our market."

What Are Reciprocal Tariffs? How Will They Impact India?

Reciprocal Tariffs operate on a simple principle—"Tit for Tat." If one country imposes a 30% import duty on another, the second country will apply the same 30% duty in return. This policy ensures balanced trade relations.

With Donald Trump announcing that from April 2, 2025, the US will impose Reciprocal Tariffs on India, trade experts believe this could lead to an increase in import duties for Indian goods. This could have direct consequences for India’s economy, affecting exports and overall trade relations between both nations.

Donald Trump’s Economic Vision

During his joint session address, Donald Trump also spoke about the economic challenges inherited from the previous administration.

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#WATCH | While addressing a joint session, US President Donald Trump says, "We inherited from the last administration, an economic catastrophe and an inflation nightmare. Their policies drove up energy prices...drove the necessities of life out of reach for millions of… pic.twitter.com/fbVWyk4o8m

— ANI (@ANI) March 5, 2025

He said, "We inherited from the last administration an economic catastrophe and an inflation nightmare. Their policies drove up energy prices and made basic necessities unaffordable for millions of Americans. We suffered the worst inflation in 48 years. As President, I am fighting every day to reverse this damage and make America affordable again."

Since taking office, Donald Trump has remained in full action mode, reshaping US trade policies. The introduction of Reciprocal Tariffs marks a major shift in trade relations, particularly with India. The coming months will reveal the full impact of this decision on both economies.