After announcing hiked tariffs for Canada, China, and Mexico at the beginning of the month, the US has now announced fresh tariffs for India and China, effective on 2nd April. In his speech during the joint session of Congress on 4th March, US President Trump confirmed that reciprocal tariffs will take effect from next month.
Trump accuses other countries of unfair taxes on US products
Justifying reciprocal tariffs, the US President said that other countries have been unfairly taxing the US and therefore now it is the turn of the US to tax them. “Other countries have used tariffs against us for decades and now it is our turn to start using them against those other countries. On average, the European Union, China, Brazil, India…and countless other nations charge us tremendously higher tariffs than we charge them,” said Trump.
Trump accused India of imposing unfair tariffs on the US automobile by over 100%. “It is very unfair. India charges us auto tariffs higher than 100%,” he said. He added that China imposes tariffs on US products twice the US tariffs on Chinese products. He expressed disappointment over South Korea imposing tariffs on US products four times higher despite receiving military aid from the US.
#WATCH | ‘India charges us auto tariffs 100%… the system is not fair to the US, it never was’: Trump vows to impose reciprocal tariffs from April 2 #DonaldTrump #Trump #America #US #Congress #Tariffs #TrumpTariffs #India pic.twitter.com/vuuWhqU6vE
— Moneycontrol (@moneycontrolcom) March 5, 2025
“China’s average tariff on our products is twice what we charge them. And South Korea’s average tariff is four times higher. Think of that. Four times higher! And we give so much help militarily and in so many other ways to South Korea but that’s what happens. This is happening by friend and foe. The system is not fair to the US, it never was. And so, on April 2nd… I wanted to make it April 1st but I didn’t want to be accused of April Fool’s Day…This one day cost us a lot of money. So we’re going to do it on April…I am a very superstitious person…April 2nd. Reciprocal tariffs kick in and whatever they tariff us, other countries, we will tariff them. That’s very simple, no back and forth,” Trump said.
Counter-tariffs by Canada, China and Mexico
On 1st February, the President of the United States, Donald Trump, imposed new tariffs on imports from Canada, Mexico, and China. He cited national security concerns stemming from illegal immigration and drug trafficking, particularly fentanyl, as the reason. The executive order signed by President Trump in this regard enforced a 25% tariff on imports from Canada and Mexico, while Chinese goods will face a 10% tariff. Canadian energy imports, including oil, natural gas, and electricity, will be subjected to a 10% tariff.
Following the confrmation by the United States about imposing tariffs on exports from Canada, China and Mexico, the three countries also announced retaliatory measures against the US. US President Trump’s decision to impose reciprocal tariffs on countries has attracted widespread criticism along with concerns about inflation and rising trade tensions globally.
Canada plans to impose levies on US imports worth $155 billion over 21 days. In the first stage, American goods worth $20.6 billion will be taxed. China has also countered the US tariffs by announcing a 10-15 per cent hike in import taxes on a range of US goods including agricultural and food products to come into effect on 10th March. Mexican President Claudia Sheinbaum Pardo said that the country is prepared for all possibilities if the US tariffs take effect.
Trump’s policy of imposing reciprocal tariffs on other countries has attracted widespread criticism. Experts around the world have expressed concerns that Trump’s policy might start a global trade war with the consumer suffering ultimately. Billionaire investor Warren Buffet has described Trump’s tariffs as ‘an act of war’.
