US President Donald Trump has announced that the country will impose a 26 per cent tariff on Indian imports, opting for a ‘discounted reciprocal’ approach instead of fully matching foreign tariffs.
Speaking from the White House Rose Garden on what he called “Liberation Day,” Trump explained that the new tariff rates were calculated based on cumulative tariffs and non-monetary barriers imposed by other countries on US goods. He stated that India imposes a 52 per cent tariff on US imports, leading to the 26% tariff rate on Indian goods under his plan.
Alongside these tariffs, Trump also revealed a universal baseline tariff of 10 per cent that will apply to all imports, regardless of their origin.
Calling the announcement one of the most important moments in American history, Trump described the move as America’s “declaration of economic independence.”
Trump has promised a “golden age” for America, claiming that his reciprocal tariffs will bring back jobs and factories while generating “trillions and trillions of dollars” to reduce taxes and pay down the national debt.
Apart from India, Trump announced huge new tariffs of 34 per cent on imports from China and 20 per cent on imports from the European Union — two of the main US trade partners.
Trump also confirmed that the 25 per cent tariff on foreign-made automobiles, which was announced last week, will take effect at midnight ET on April 2 (9:30 AM IST on April 4).
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