US President-elect Donald Trump has taken an aggressive position regarding what he calls India’s “high tax” policy, specially targeting tariffs on imports from the United States that, in his opinion, may reach up to 100 percent for some products.
Speaking at his Florida resort in Mar-a-Lago on December 16, Trump added, “If they tax us, we tax them the same.” His words suggest he can move ahead with a ‘tit for tat’ reaction not just against India, but even against other nations like Brazil, Mexico, and China, all of whom he has blamed for using high tariffs.
“The word reciprocal is important,” Trump drove home, questioning the reciprocity of the current trade dynamics. “If India charges us 100 percent, do we charge them nothing for the same? They send in a bicycle, and we send them a bicycle. They charge us 100 and 200,” he elaborated.
Trump mentioned again that countries like India and Brazil charge substantial tariffs. “If they want to charge us, that’s fine, but we’re going to charge them the same thing.” And he promised to introduce some fairness into the U.S. trade regime.
The President-elect’s incoming Commerce Secretary Howard Lutnick addressed reporters in New York Monday, where he mirrored the president-elect’s statements that “reciprocity” would be a central theme going forward in U.S. trade policy.
Meanwhile, the Trump administration, which will yield to President Joe Biden’s outgoing administration, signaled its intent to continue the U.S.-India partnership’s bipartisan support in Congress for his expected second term. Kurt Campbell, Deputy Secretary of State, said, “We continue to be very ambitious about the U.S.-India relationship,” highlighting recent high-level engagements including the QUAD summit.
Analysts say Trump has also promised to get tough on Mexico, Canada, and China over issues related to illegal drug trafficking and migration, which could strain the USMCA.
