Donald Trump threatens reciprocal tariffs on India over high import taxes: ‘If they tax us, we tax them the same amount’

Speaking to the media, Trump emphasized, "If they tax us, we will tax them equally. They tax us, and we will tax them”

December 18, 2024

US President-elect Donald Trump’s big message to India on trade policies

Donald Trump, the incoming President of the United States, has warned that the US will impose reciprocal tariffs on Indian goods if India continues to levy high taxes on American products. Trump made it clear that his administration would apply equivalent tariffs in response to India’s “high tariffs” on certain US imports. Speaking to the media, he emphasized, “If they tax us, we will tax them equally. They tax us, and we will tax them.”

Trump singled out India, along with China and Brazil, as countries that impose excessive tariffs. He pointed out that India, in particular, has the highest tariffs, which he said creates significant challenges for American businesses looking to operate in the Indian market. He further criticized the unequal tariff structure, stating that while the US is generally liberal with its tariffs, countries like India take a much more aggressive approach.

“If India charges us 100%, should we not charge them anything?” Trump asked, referencing the disproportionate import taxes India places on US products, particularly citing tariffs on American-made Harley Davidson motorcycles, which he had previously complained about during his first term in office.

Trump’s comments were echoed by Howard Lutnick, whom Trump has nominated for Commerce Secretary. Lutnick reiterated that “reciprocity” would be a core principle of the new US administration’s trade policies, saying, “How you treat us is how you should expect to be treated.”

The statement highlights the ongoing tensions around trade imbalances and tariff practices and signals potential changes in US trade relations with India.

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