The Trump administration has announced the implementation of 'reciprocal tariffs' from April 2, targeting key trading partners such as India, the European Union, South Korea, and Brazil. These tariffs aim to match the tax rates imposed by these countries on American goods.President Donald Trump, emphasising fairness in trade, stated, "Whatever countries charge the United States, we will charge them the exact same tax. In most cases, they charge us more, but those days are over."While global industries fear the impacts, India's NITI Aayog believes the tariffs will have a missed effect. Former Vice Chairman Rajiv Kumar explained, "Indian exporters will face disadvantages, but higher tariffs on China, Mexico, and Canada could offer opportunities."The US has already imposed a 25 per cent tariff on steel, aluminum, and auto imports. White House Press Secretary Karoline Leavitt defended the move, saying, " These tariffs will protect national security and American workers."Experts warn the police may backfire, raising export prices and fueling inflation in the US. Economist Aakash Jindal remarked, "A tariff war could push the global economy into a showdown or even recession."This decision comes ahead of trade negotiations between the US and India, with both nations aiming to double bilateral trade to $500 billion by 2030. (With PTI Inputs)
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00:00from the second of April the Trump administration will impose tariffs on
00:13goods exported by its key trading partners including India that will match
00:17the rates charged by them along with India the European Union South Korea and
00:22Brazil among other countries are also likely to be impacted by these reciprocal
00:26tariffs these tariffs are key to Trump's aim to what he describes as freeing the
00:34United States from foreign goods and on trade I have decided for purposes of
00:40fairness that I will charge a reciprocal tariff meaning whatever countries charge
00:46the United States of America we will charge them no more no less in other
00:51words they charge us a tax or tariff and we charge them the exact same tax or
00:59tariff very simple nobody knows what that number is unless you go by the
01:03individual country you can see what it is if you go to the individual country and
01:08you look at what they're charging us in almost all cases they're charging us
01:13vastly more than we charge them but those days are over Trump on various forums has
01:19stated that many countries including India have been charging higher tariffs on
01:24American goods while industries across the world dread the announcement the
01:29apex public policy think tank of India need the IO has stated that reciprocal
01:34tariffs will have a mixed impact on Indian industry and could in fact create
01:38several opportunities for the country it will be a mixed impact and I say this
01:46because while we will be adversely impacted by higher tariffs on these items as
01:52president Trump has said and therefore you know our exporters will be at a
02:00disadvantage but at the same time he is putting much higher tariffs on neighboring
02:05countries like Mexico and Canada and also China which are also major exporters of
02:11these items to the u.s. so to that extent our exporters may be at a at an
02:15advantage the u.s. has already imposed 25 percent import duties on steel and
02:22aluminum products from the 12th of March and it has also announced a sweeping 25
02:26percent tariff on completely built vehicles and auto parts and on trade
02:33president Trump continues to take bold action to protect America's critical
02:37steel and aluminum industries much like he did in his first term and the
02:42president signed proclamations to close existing loopholes and exemptions to
02:46restore a true 25 percent tariff on steel and elevate the tariff on aluminum to
02:5125 percent as well this administration believes these tariffs will protect our
02:56national security and put American workers first some experts suggest that higher u.s.
03:02taxes on Indian goods may increase export prices reducing demand they believe the
03:08move could be counterproductive for the u.s. and the global economy escalating
03:12inflation in America Donald Trump is having plans for imposing reciprocal
03:20tariffs on many countries including India my view is that that's going to
03:26negatively impact American economy as well as the global economy see now a tariff war
03:33would escalate inflation in America and u.s. has been fighting inflation for the
03:40past two and a half to three years so that's perhaps going to negatively impact
03:44u.s. economy itself plus the global economy is already trying to creep out of a
03:51slowdown so a tariff war is likely to get the global economy back into slowdown and
03:58perhaps a recession also as far as India is concerned we are a country which is
04:05primarily dependent on domestic demand so we are not going to be impacted much
04:11the announcement to impose reciprocal tariffs came ahead of Trump's meeting with
04:16Prime Minister Modi during the latter's high-stakes visit to the u.s.
04:19earlier this year while in Washington Modi and Trump discussed a potential trade
04:24deal between the two countries a team of u.s. officials headed by assistant u.s.
04:30trade representative for South and Central Asia Brendan Lynch recently visited
04:35Delhi for negotiations on the proposed bilateral trade agreement with India and
04:42this announcement on reciprocal tariffs by President Trump comes at a time when
04:46both nations have expressed their intentions to strengthen the economic
04:52partnership and a commitment in fact Mr. Modi Prime Minister Modi spoke about a
04:58commitment or at least indicated a commitment to reduce tariffs on specific u.s.
05:03goods and the aim to double bilateral trade by 2030 to 500 billion u.s.
05:10dollars so in fact the reciprocal tariff policy could serve as a catalyst for
05:16more you can call them balanced trade negotiation India and the u.s. are aiming to
05:22conclude the first phase of the trade agreement by September October 2025 the
05:28two countries have also set a target to more than double the bilateral trade to
05:32500 billion u.s. dollars by 2030 from the current 190 billion u.s. dollars