India faces 26% US tariff as Trump praises PM Modi but demands ‘fair trade’

Guwahati, April 3: The United States has announced a wave of reciprocal tariffs on several countries, with India facing a 26% levy under the new trade measures.

Trump, who had long promised to impose retaliatory tariffs against countries he claimed were unfairly taxing American exports, places India among the nations hit with higher tariffs, exceeding the 20% rate imposed on the European Union, 24% on Japan, and 25% on South Korea.

China, on the other hand, has been subjected to one of the steepest hikes, with tariffs surging to 54% on various goods.

At a White House briefing, he said that April 2 would be remembered as the day American industry was reborn, America’s destiny was reclaimed, and the country began its journey toward renewed wealth.

Despite calling Indian Prime Minister Narendra Modi “a great friend,” Trump justified the tariff increase on India by citing high duties on American goods.

“India is very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52%, and we charge them almost nothing,” he said.

Additionally, Trump announced a universal baseline tariff of 10% that will be imposed on all imports, irrespective of their country of origin.

The administration claims that the newly imposed tariffs will generate $6 trillion in investments and revitalize the American economy.

The tariff hikes come despite India’s recent efforts to address US trade concerns. Over the past few weeks, India has cut import duties on 8,500 industrial items, including American goods such as bourbon whiskey and Harley-Davidson motorcycles—an issue Trump has frequently criticised.

India has also indicated its willingness to increase purchases of American oil, liquefied natural gas (LNG), and defence equipment to balance the trade deficit. Officials suggest further tariff reductions may be on the table as negotiations continue.