This development follows a statement made by US President Donald Trump, who labeled India, China, and Brazil—key founding members of the increasingly significant BRICS coalition—as “tremendous tariff makers.” According to sources cited by NDTV Profit on Wednesday, India is considering reducing tariffs on certain high-end imports from the United States, including a specific type of steel, luxury motorcycles, and electronic products.
However, this adjustment is not expected to significantly affect domestic industries, with further confirmation anticipated during the budget presentation by Union Finance Minister Nirmala Sitharaman on Saturday. Currently, India imposes duties exceeding 100 percent on 20 different items imported from the US.
Trump’s remarks, made to House Republicans, emphasized his commitment to addressing what he perceives as unfair trade practices. He stated, “we’re not going to let that happen any longer… we’re going to put America first.” He further asserted that tariffs would be imposed on countries that pose a threat to the United States, specifically mentioning China, India, and Brazil. His comments were met with enthusiasm from his audience.
The President’s recent criticisms of India, along with China and Brazil, regarding high tariffs, resonate with his previous statements made in September as the November 20 election approached. He expressed a desire for reciprocal trade, indicating that if other nations impose high duties on American goods, the United States would respond in kind. He characterized the leaders of these countries as shrewd negotiators, noting, “India is very tough. Brazil is very tough… China is the toughest of all… but we’re taking care of China with the tariffs.”
The comments were made just days prior to Prime Minister Narendra Modi’s visit, at a time when Joe Biden was still in office. Now, following Mr. Modi’s recent criticism of “tremendous tariff-makers,” he is set to visit the United States once more.
During Donald Trump’s campaign, high tariffs on imports, particularly from China, were a recurring theme. He also issued warnings about imposing “100 percent tariffs” on BRICS nations to deter discussions about abandoning the dollar as the primary currency.
Many observers interpret Trump’s aggressive tariff policies as a distinct economic strategy, albeit with questionable methods, aimed at revitalizing American manufacturing. By increasing the costs of essential goods such as steel, semiconductors, and pharmaceuticals, he aims to achieve this goal. He posits that under the “America First” economic framework, as tariffs on foreign countries rise, taxes on American workers and businesses will decrease, leading to a significant return of jobs and factories to the United States.
Conversely, there is the viewpoint of tariffs being utilized as a weapon, highlighted by Trump’s confrontation with Colombia regarding deportations. Initially, Colombia declined to accept a plane filled with ‘illegal immigrants,’ prompting the Trump administration to impose a substantial 25 percent tariff on Colombian goods, which ultimately forced President Gustavo Petro to acquiesce. Trump later suggested that this incident should serve as a lesson for the international community.