“India hits us with 100 percent tariffs—it’s been unbalanced forever,” Trump declared.
Washington, D.C., March 5, 2025 – U.S. President Donald Trump has dashed India’s expectations of trade concessions, announcing reciprocal tariffs effective April 2 in response to what he calls India’s excessive levies on American goods. Speaking to a Joint Session of Congress on Tuesday, Trump zeroed in on India’s auto sector, where tariffs exceed 100 percent, as a prime example of unfair trade practices.
“India hits us with 100 percent tariffs—it’s been unbalanced forever,” Trump declared. “Starting April 2, we’ll match their taxes. If they block us with non-tariff tricks, we’ll do the same to them.” The move dims prospects raised by Indian Prime Minister Narendra Modi’s recent U.S. visit, where New Delhi anticipated relief from broad tariffs in exchange for opening its markets to U.S. products like bourbon, on which India had already cut duties.
India’s Commerce Minister Piyush Goyal arrived in the U.S. this week to negotiate with Jamieson Greer, Trump’s newly appointed United States Trade Representative, who previously helped steer Trump’s China-focused tariff strategy. Despite these efforts, Trump signaled no retreat, accusing nations like India, China, Brazil, and the EU of exploiting the U.S. with high tariffs while offering little in return.
Moody’s warned last month that countries like India, with significant tariff gaps compared to the U.S., could face steep economic impacts, particularly in sectors like food, textiles, and pharmaceuticals. While India’s domestic focus may cushion some effects, the agency noted potential currency strain and limited monetary policy flexibility in the region. Still, strong domestic demand and solid economic buffers could soften the blow, Moody’s added.
Trump’s tariff plan aligns with his 2025 trade policy, which challenges the World Trade Organization’s framework and criticizes exemptions claimed by developing nations like India, setting the stage for further global trade friction.
