Donald Trump on Monday warned India of imposing a reciprocal tax as India levies ‘high tariffs’ on American products. Trump intends to impose the same tax on Indian products. This may turn into a potential trade war brewing between India and the United States.  

What did Donald Trump say?  

In response to what he referred to as the ‘high tariffs’ imposed by India on certain US imports, Trump reiterated his intention to impose reciprocal tariffs, directly threatening India.  

While speaking to the media, Trump said, “Reciprocal – whatever tax India imposes on us, we will impose the same on them.” He openly accused India of charging excessive taxes on the US and said, “India imposes high tariffs on almost everything, and we forgive them, but this will no longer continue.”  

While responding to a question about a potential trade deal with China, Trump commented on countries like India and Brazil, accusing them of levying high tariffs on certain American products. He emphasised the importance of the concept of ‘reciprocal’, stating that ‘if they tax us, we tax them’, the US will no longer hesitate to respond in kind.

Recently, a report suggested that Trump is planning to deport nearly 18,000 undocumented Indian nationals on January 20, 2025, in the first list of deportation.

Earlier this week, Switzerland also removed India from the ‘Most Favoured Nation’ status, ending a 30-year agreement between the two countries, effective from January 1, 2025.

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