(Image source from: Moneycontrol.com)

During a joint appearance on television with billionaire Elon Musk, US President Donald Trump made it abundantly clear that India would not escape the effects of Washington's reciprocal tariffs. In a discussion with Sean Hannity from Fox News, President Trump reaffirmed his position regarding global trade and the current tariff arrangements between the United States and its trading partners. "I told Prime Minister Modi just yesterday while he was here, 'Here’s what we’re going to do: reciprocal. Whatever you impose, I’m going to impose,'" President Trump recounted from his dialogue with Modi. He added, "He replied, 'No, no, I don't like that.' I insisted, 'No, whatever you impose, I’m going to impose.' I'm doing the same with every country."

India has some of the highest import tariffs worldwide, particularly in the automotive industry, where duties on foreign vehicles can soar as high as 100 percent. Mr. Musk, who was seated alongside President Trump, affirmed this fact, stating, "It's 100 percent - auto imports are at 100 percent." Trump responded, "Yeah, that’s insignificant. There are much higher rates. And others as well."

He argued that such tariffs hinder American companies' ability to operate in India without setting up manufacturing facilities there, something he deems "unfair" to the US economy. Under the reciprocal tariff framework he proposes, the United States would apply the same tariff levels on Indian goods as India does on American products. "No one can dispute this," President Trump asserted. "If I mentioned 25 percent, they would respond, 'Oh, that’s terrible.' I don’t mention that anymore... because I say, 'Whatever they charge, we’ll charge.' And you know what? They back off."

This isn’t the first instance of President Trump taking issue with India over tariffs. During his initial term, he frequently labeled India the "tariff king," due to the significant import duties on US products. After Prime Minister Modi’s recent trip to Washington, both nations pledged to increase bilateral trade to $500 billion by 2030 and to work towards a bilateral trade agreement by Autumn 2025.