U.S. President-elect Donald Trump has issued a stark warning to India over its trade practices, vowing to impose reciprocal tariffs on Indian goods if high taxes on American imports persist.
Speaking to reporters at his Mar-a-Lago resort on Monday, Trump criticised India for imposing what he described as “excessive tariffs,” particularly a 100% duty on certain U.S. products.
“If they tax us, we tax them the same amount,” Trump declared, emphasising the principle of fairness in trade. “India charges a lot. If they want to charge us, that’s fine, but we will charge them the same thing.”
Trump’s remarks are part of his broader push for recalibrating U.S. trade relations with key partners. He has repeatedly pledged to take a tougher stance on trade, citing imbalances and unfair practices by nations such as China, Brazil, and India.
Targeting tariffs and trade balance
Trump singled out India and Brazil for imposing “high tariffs” on U.S. imports, stating that such practices undermine the principles of fair trade.
"India charges us 100%, sometimes even 200%, for goods like bicycles, while we charge them nothing. That will change," he said.
The President-elect’s comments come amid longstanding trade disputes between the U.S. and India. While both countries have enjoyed deepening ties in defence and technology sectors, tariff disagreements have remained a persistent point of contention.
Experts believe that reciprocal tariffs could escalate tensions between the two nations, potentially impacting sectors like pharmaceuticals, agriculture, and technology exports.
North American tensions escalate
Trump’s tough rhetoric extended beyond India, as he also addressed trade challenges with Canada and Mexico. He reiterated his plan to impose a 25% tariff on imports from both countries unless they take action against the flow of illegal drugs and migrants into the U.S.
The President-elect’s proposed measures threaten to strain the U.S.-Mexico-Canada Agreement (USMCA), which governs trade relations in North America. “We need secure borders, and if they fail to act, we will,” Trump stated firmly.
In response, Canada announced a CAD 1.3 billion plan to bolster border security, including enhanced inspections of goods headed to the U.S. and increased surveillance measures.
The initiative comes amid a significant rise in migrant detentions along the Canada-U.S. border, with over 23,000 individuals detained in the past year, compared to 10,000 in the previous 12 months.
While Trump’s comments signal a shift towards protectionist policies, analysts caution that escalating trade disputes could have ripple effects on global markets.
India, with its growing economy, remains a key trade partner for the U.S., but reciprocal tariffs could undermine efforts to expand bilateral trade.
