If they tax us, we tax them: Trump’s warning to India over tariffs on US goods
US President-elect Donald Trump has vowed to impose reciprocal tariffs on India if the country continues to levy high taxes on American goods.
Speaking to reporters at his Mar-a-Lago resport on Monday, Trump criticised India’s tariff practices, specifically highlighting the 100% tariffs on certain US products.
He made it clear that his administration would adopt a tit-for-tat approach, saying, “If they tax us, we tax them the same amount.” Trump’s remarks signal a more confrontational trade stance towards India, a country he singled out alongside others like Brazil for imposing what he described as “high tariffs” on US imports.
Trump’s comments came as part of a broader conversation about trade relations with major US partners, including China, Mexico, and Canada.
“The word reciprocal is important because if somebody charges us – India, we don’t have to talk about our own – if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200. India charges a lot,” he said.
“India charges a lot. Brazil charges a lot. If they want to charge us, that’s fine, but we’re going to charge them the same thing,” Trump said, emphasising that fairness in trade was key to his economic agenda.
While the US-India trade relationship has long been marked by disagreements over tariffs, Trump’s statement signals a tougher stance as he prepares to take office.
His remarks were a direct response to a reporter’s question about potential trade agreements, particularly with China, which he has repeatedly criticised for unfair trade practices.
Trump’s tough rhetoric on trade was not limited to India. He also addressed the ongoing trade disputes with China, Mexico, and Canada, making it clear that reciprocal tariffs would be a cornerstone of his administration’s economic policies.
The trade situation with Mexico and Canada also remains contentious, particularly with respect to border security and drug trafficking.
Trump reiterated his plan to impose a 25% tariff on all imports from Canada and Mexico unless both countries take action to address the flow of illegal drugs, including fentanyl, and the movement of migrants across the US borders.
This stance, which could significantly strain the US-Mexico-Canada Agreement (USMCA), would have far-reaching consequences for trade between the North American neighbours.
In response to Trump’s threats, Canada’s government has already proposed a CAD 1.3 billion investment in border security to reduce the flow of migrants and drugs, Reuters reported.
As part of this initiative, Canada intends to grant additional powers to its border services to inspect goods destined for export to the United States.
The Canadian government’s announcement follows a surge in migrant detentions along the Canada-US border, with more than 23,000 people detained in the 12 months leading up to October, compared to just 10,000 the year before.
Canadian authorities are also increasing surveillance and deploying more officers to address these issues, although they acknowledge their limited ability to prevent southbound crossings.