In a major policy move, U.S. President Donald Trump targets India with a steep import tariff, accusing the country of high trade barriers while calling Prime Minister Modi a “great friend.”
New Delhi / Washington DC, April 3, 2025:
In a development that could significantly impact India-U.S. trade relations, U.S. President Donald Trump announced a 26% import tariff on Indian goods, citing longstanding trade imbalances. The announcement was made during his address at the Make America Wealthy Again event in Washington on Wednesday (local time).
While calling Indian Prime Minister Narendra Modi a “great friend,” Trump didn’t shy away from accusing India of treating the U.S. unfairly in trade matters.
“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 per cent, and we charge them almost nothing,” Trump said, addressing the crowd.
He went on to highlight the disparity in specific sectors such as motorcycles and automobiles, noting that India charges 70% tariffs on imported motorcycles, while the U.S. imposes just 2.4%.
In a broader move, Trump also announced a 25% tariff on all foreign-made automobiles, calling it a necessary step to safeguard America’s industrial base and national security.
“Such horrendous imbalances have devastated our industrial base… Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles,” he said.
India now joins a list of countries facing steep tariffs from the U.S., including:
- China: 34%
- Vietnam: 46%
- Japan: 24%
- Taiwan: 32%
- Sri Lanka: 44%
- Bangladesh: 37%
- Pakistan: 29%
- European Union: 20%
- United Kingdom: 10%
- Israel: 17%
The White House stated that these measures go into effect immediately and are part of Trump’s broader push for reciprocal tariffs, a concept he called “America’s Declaration of Economic Independence.”
“For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich at our expense. With today’s action, we are finally going to be able to make America great again—greater than ever before,” Trump declared.
🇮🇳 India’s Trade Reaction Awaited
Indian officials have not yet issued an official response, but the move is expected to raise concerns in New Delhi, especially given the growing bilateral trade ties and diplomatic warmth between the two countries. Analysts believe the 26% tariff could particularly affect India’s automobile parts, textiles, and pharmaceutical exports.
Trade experts warn this move might trigger retaliatory actions or impact ongoing negotiations on trade facilitation, digital services, and investment.