WashingtonNewly elected US President Donald Trump expressed his intention to impose a reciprocal tax on India. Speaking on the issue on Wednesday, Trump said that if they tax us heavily, we can also tax them. Trump said that so far they are taxing, but we are not. Trump’s statement came a few days before he was sworn in as president. Trump had earlier criticized India by calling it the tariff king. Trump recently warned the BRICS countries against imposing a 100 percent tax on their exports if they back any currency other than the US dollar. According to a TOI report, Trump said that the reciprocal tax is important in terms of taxes because if someone imposes tariffs on us, someone will impose tariffs on us. We should also do the same. He said that many countries like India, China and Brazil charge very high fees. If they want to impose tariffs on America, fine, but we will impose the same tariffs on them. Apart from India, Donald Trump recently warned Canada that if it does not stop the entry of drugs and illegal immigrants into America, a 25 percent tariff will be imposed on them.
Customs duties were also imposed in the first semester
Donald Trump also imposed high tariffs on Indian steel and aluminum during his first term as president. As a result, India imposed retaliatory tariffs on American products such as almonds and apples. Experts believe that if Trump targets India again, similar trade tensions could arise. The automobile, textile and pharmaceutical sectors may face higher tariffs under Trump’s reciprocal trade policy, Ajay Srivastava of the Global Trade Research Initiative told TOI.
According to an analysis by Shriram Mutual Fund, India may also benefit from export opportunities arising from trade disruptions caused by Trump’s proposed tariff policies. Trump’s tariffs on major trading partners such as China, Mexico and Canada could alter trade flows. This will create opportunities for India. Reciprocal tariffs can be understood as a policy in which countries raise the same tariffs as their trading partners on similar goods.
