MAR-A-LAGO, Florida. Dec 18 — Incoming US President Donald Trump has threatened to impose reciprocal tariffs on India, reiterating his longstanding complaints about New Delhi’s high tariffs. Speaking at a news conference at Mar-a-Lago alongside his commerce secretary pick Howard Lutnick, Trump emphasized his “America First” approach, which previously ended preferential trade status for India in 2019.
During his first term, Trump’s administration engaged in a bitter tariff war with India, affecting trade ties despite the close relationship between Trump and Indian Prime Minister Narendra Modi. Trump stated, “If they tax us, we tax them the same amount. They tax us. We tax them. And they tax us almost in all cases and we haven’t been taxing them.”
Relations between India and the US improved during the Biden administration, with Washington viewing India as a strategic partner in counterbalancing China’s rise in the Indo-Pacific. However, analysts suggest that India-US ties under Trump’s second administration will face the challenge of a looming tariff war.
Following his election win, Trump threatened to impose a 100 percent tariff on BRICS countries—Brazil, Russia, India, China, and South Africa—if they attempted to replace the US dollar for international trade. Indian Foreign Minister Subrahmanyam Jaishankar expressed confidence in India’s ability to build deeper relations with the incoming Trump administration.
The close relationship between Modi and Trump from 2017 to 2021 included events like the “Howdy, Modi!” event in Houston and the “Namaste Trump” event in Ahmedabad. Despite the tariff disputes, the US remains India’s top export destination, with goods and services exports totaling $120 billion in 2023.
