Just hours before his scheduled meeting with Indian Prime Minister Narendra Modi, U.S. President Donald Trump sparked speculation via social media with a cryptic post. He hinted at a significant move in trade, stating, "Three great weeks, possibly the best ever, but today is the biggest day: Reciprocal Tariffs. Make America Great Again." This post arrives amidst plans to implement reciprocal tariffs, a policy designed to align U.S. import fees with those imposed by other nations. This move is expected to stir global trade further, likely drawing the attention of major trade partners like India.
Trump has long criticized practices he deems unfair, previously urging countries to lower tariffs on American goods. Today, he will reveal the list of countries subject to reciprocal tariffs.
Source: aajtak
Previously, he said, "It's time for reciprocity. You're going to hear that a lot. Reciprocal. If they charge us, we'll charge them."
He has hinted that a detailed policy order will be issued by Wednesday or Thursday, emphasizing reciprocity from every nation. This announcement coincides with PM Modi's two-day visit to the U.S., where India's tariff policies face scrutiny from the Trump administration for allegedly hindering American imports and fair trade.
Trump's Tariff Blasts
Notably, Trump announced a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese goods. However, Republicans temporarily halted tariffs on neighboring countries until March 1, after Mexico and Canada addressed Trump's concerns about illegal immigration and drug trafficking.
Modi’s Diplomatic Visit
After completing a two-day visit to France, Prime Minister Narendra Modi arrived in Washington D.C. on Wednesday (EST). This visit marks a significant moment in diplomatic engagement as he becomes the fourth foreign leader to meet President Trump since his inauguration on January 20. During his stay, PM Modi is scheduled for high-level discussions with Trump, culminating in a joint press conference on Friday (IST) around 2.30 PM. Topics expected to be discussed include trade, defense, and strategic cooperation.
What are Reciprocal Tariffs?
Reciprocal tariffs are taxes imposed on imported goods from another country. During his campaign, Trump promised "an eye for an eye, a tariff for a tariff, of exactly the same amount." He reiterated that a detailed announcement on tariffs will be made by Tuesday or Wednesday, stressing that every nation will reciprocate. Experts note that the goal is to hike import tariffs to the same level other countries impose on American goods. Matching these across products is anticipated to raise the average U.S. tariff rate by about two percent.
