US President-elect Donald Trump has once again called attention to the high tariffs imposed by India on certain American products, threatening to implement reciprocal taxes to counter the disparity. Speaking to reporters on Monday, Trump emphasized his administration’s commitment to ensuring fairness in trade practices.
“Reciprocal. If they tax us, we tax them the same amount,” Trump said at a news conference in Mar-a-Lago. “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 highlighted India’s high tariffs on items like paper products and Harley-Davidson motorcycles, a stance he has reiterated since 2019, referring to India as a “tariff king.” During his campaign in October, he also accused India of imposing the highest tariffs globally.
Commerce Secretary pick Howard Lutnick echoed Trump’s position, stating, “Reciprocity is something that is going to be a key topic for the Trump administration. How you treat us is how you should expect to be treated.”
Despite the criticisms, trade between the two nations has grown significantly. In the 2023–24 fiscal year, India’s exports to the US stood at $77.51 billion, while imports totaled $42.2 billion. Between FY 2020 and FY 2024, India’s merchandise exports to the US grew by 46%. Trade in services also expanded by over 30% during this period.
The US remains India’s largest trading partner, and American businesses continue to see India as a key market for investments, with the country receiving $66.7 billion in FDI from the US between April 2000 and June 2024.
