Get Instant Loan up to ₹10 Lakh!
White House Press Secretary Karoline Leavitt confirmed on Wednesday (February 12) that President Donald Trump will announce a reciprocal tariff plan before Prime Minister Narendra Modi's visit.
“I do believe it will come before the prime minister’s visit tomorrow,” press secretary Karoline Leavitt stated at the White House when questioned about Trump's upcoming announcement. She added, “I will let the president discuss the details on the reciprocal tariff front, but this is something he believes strongly in.”
Trump has long advocated for tariffs that match the tax rates imposed by other countries on US goods. "It’s time to be reciprocal," he told reporters earlier this week. "You’ll be hearing that word a lot. Reciprocal. If they charge us, we charge them."
The president was initially expected to sign the order on Tuesday or Wednesday, but when asked about the timeline, he responded, "We'll see what happens."
The US has imposed tariffs on Canada, Mexico, and China, and President Donald Trump has described India as a ‘tariff king’ and ‘abuser’ of tariffs in the past.
India's Finance Minister Nirmala Sitharaman slashed import tariffs, including those on high-end motorcycles and electric batteries in her Budget proposals last week. The decision taken days before Modi’s US trip is seen as a boost to Harley-Davidson, the iconic US company whose struggles in motorbike-loving India captured Trump's attention, news agency AFP reported.
Narendra Modi's trip is expected to engage Trump in bilateral talks centring around trade between the two countries as well as the crackdown on illegal immigration.
If signed, the order would mark a significant shift from previous administrations, which largely viewed trade tariffs as strategic tools or trade barriers to be lowered. Trump has expressed a desire to return to an economic model from the 1890s, when import taxes were a primary source of government revenue.
Trump has already imposed a 10% tariff on Chinese goods over its role in fentanyl production, prompting retaliatory measures from China. He has also warned that tariffs on Mexico and Canada could be implemented by March 1 if those nations do not take stronger actions against illegal immigration and drug smuggling.
On Monday (February 10), Trump ended exemptions to his 2018 steel and aluminum tariffs and increased tariff rates on aluminum. He has also considered additional tariffs on imported autos, computer chips, and pharmaceutical drugs.
America’s major trading partners are preparing countermeasures in response to Trump’s trade policies. European Commission President Ursula von der Leyen warned on Tuesday (February 11), "Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures." Potential EU tariffs could impact American exports, including motorcycles, jeans, bourbon, and peanut butter.
Mexico and Canada, the United States' largest trading partners, are also planning retaliatory measures should Trump proceed with new tariffs.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.