U.S. President Donald Trump has announced a sweeping set of reciprocal tariffs on imports from multiple countries, marking a significant shift in America’s trade policy. In a speech on Liberation Day, Trump displayed a tariff chart, emphasizing that countries have been exploiting U.S. trade policies for decades.
The tariffs include a 34% duty on Chinese imports, 26% on Indian products, 20% on goods from the European Union, 25% on South Korean exports, and 32% on Taiwanese goods. Other countries, including Vietnam, Thailand, Switzerland, and Brazil, are also impacted.
Trump’s Message: A Turning Point for U.S. Trade
Speaking from the White House, Trump declared April 2, 2025, as a day of “American industrial rebirth” and the beginning of a renewed economic mission. He argued that American taxpayers have been exploited for over five decades, and his administration is taking action to correct this imbalance.
Trump had previously advocated for a 52% tariff on India but ultimately implemented a discounted reciprocal tariff of 26%. Addressing the India-U.S. trade relationship, he remarked:
“India has not treated America fairly. Prime Minister Modi is a great friend, but I told him—your trade policies towards us have been too harsh. You charge us 52%, while we charge nothing. This has gone on for too long, but I am ending it now.”
Complete List of New U.S. Reciprocal Tariffs:
- China: 34%
- European Union: 20%
- South Korea: 25%
- India: 26%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- Thailand: 36%
- Switzerland: 31%
- Indonesia: 32%
- Malaysia: 24%
- Cambodia: 49%
- United Kingdom: 10%
- South Africa: 30%
- Brazil: 10%
- Bangladesh: 37%
- Singapore: 10%
- Israel: 17%
- Philippines: 17%
- Chile: 10%
- Australia: 10%
- Pakistan: 29%
- Turkey: 10%
- Sri Lanka: 44%
- Colombia: 10%
Impact on India’s Trade and Economy
Experts warn that India may face an annual loss of $7 billion due to these tariffs. A Citi Research report has indicated that key sectors such as chemicals, metals, and jewelry will be the most affected.
Key Trade Statistics and Risks:
- In 2024, India exported $74 billion worth of goods to the U.S., with gems and jewelry accounting for $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals at $4 billion.
- Pharmaceutical exports face the highest risk, contributing 2.8% of India’s total exports and 0.3% of its GDP.
- Other impacted industries include agriculture, precious stones, chemicals, medical devices, electronics, and machinery.
- India’s processed food and sugar exports—worth $1.03 billion in 2024—could suffer from a nearly 25% tariff imbalance.
Global Trade Tensions on the Rise
Trump’s aggressive tariff policy could further strain U.S. relations with key trade partners. With India, China, and the EU among the most affected, retaliatory tariffs could be introduced, escalating global trade conflicts.
As nations prepare for a possible trade war, businesses and consumers will closely watch how these measures impact global supply chains and economic growth.
