US Targets India’s High Tariffs

On 4th March 2025, U.S. President Donald Trump criticized India's high tariffs, particularly in the auto sector, and confirmed that reciprocal tariffs will take effect from April 2, impacting trade negotiations between the two nations.

Key Points

Reciprocal Tariffs from April 2: US President announced that the U.S. will impose tariffs equal to those levied by India, citing unfair trade practices.
Impact on India-U.S. Trade Deal: Hopes of securing tariff relief from the U.S. were dampened despite recent efforts by India, including cutting tariffs on select products like bourbon whiskey.
Moody’s Warning on Economic Impact: A report by Moody’s suggests that India’s food, textiles, and pharmaceutical sectors could face risks, and the Indian rupee may experience downward pressure due to capital outflows.
US 2025 Trade Policy & WTO Criticism: The latest U.S. trade policy questions the WTO’s relevance, criticizes special trade benefits given to developing countries like India, and asserts that China’s state-led economic model undermines global trade principles.