Donald Trump Reciprocal Tariff: US President Donald Trump hinted at giving relief to some countries in reciprocal tariffs. India's name may also be included in this. Trump said on Friday (March 28) that he is ready to make agreements with those countries who want to avoid America's reciprocal tariffs.
However, he also clarified that any agreement on this will be made only if it is in America's interest. Trump has also talked about announcing tariffs on the pharmaceutical industry soon. But he did not say when these tariffs will be implemented and what percentage they will be.
Which countries will get relief from reciprocal tariff?
According to Trump, many countries including Britain have approached the US to make a deal to avoid reciprocal tariffs. He said, "They want to make a deal. If we get something good in return, the way is open. I am ready for it, but we should also benefit."
When Trump was asked if these agreements could be reached before April 2, he replied, "No, maybe later. It's a process." Trump said that reciprocal tariffs will be imposed on countries that have imposed taxes on American goods from April 2.
What did Trump say about India?
Trump expressed confidence that the tariff talks between India and the US will be resolved well. "Prime Minister Narendra Modi recently visited the US and we have always been good friends," he said while talking to reporters at the White House.
He further said, "India is one of the countries in the world where the highest taxes are levied on imports… it is quite strict. Modi is a very smart and wonderful leader and also a good friend of mine. We had a very good conversation, and I think the tariff issue between India and America will be resolved well."
PM Modi visited Washington DC in February and discussed trade and other issues with Trump. This visit took place when Trump was sworn in as President for the second time. Trump has also said earlier that India is a country where very high taxes are imposed on imports.
What is Reciprocal Tariff?
Reciprocal Tariff means that if a country imposes tax on American goods, then America will also impose the same or similar tax on the goods of that country. In simple language, this can be called a "tit for tat" tariff.
Now suppose India imports mobile phones from the US and imposes a 20% import duty on them. If the US finds this unfair, it can impose a 20% or higher tax on any similarly priced product (such as textiles or automobiles) coming from India.
Trump believes that many countries impose high tariffs on goods coming from America, which harms American companies. That is why he is imposing 'reciprocal tariffs' so that pressure can be put on these countries and a fairer trade deal can be achieved for America.
