Donald Trump to announce reciprocal tariffs ahead of PM Modi’s visit, White House confirms

  • White House Press Secretary Karoline Leavitt confirmed that President Trump will announce a reciprocal tariff plan before Prime Minister Modi’s visit.

Livemint
Updated13 Feb 2025, 05:50 AM IST
Donald Trump has long advocated for tariffs that match the tax rates imposed by other countries on US goods. Photographer: Yuri Gripas/Abaca/Bloomberg
Donald Trump has long advocated for tariffs that match the tax rates imposed by other countries on US goods. Photographer: Yuri Gripas/Abaca/Bloomberg(Bloomberg)

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.

Breaking with trade precedents

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.

Tariffs on China, Mexico, and Canada

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.

 

Also Read | Modi-Trump talks: Will India’s concessions avert a tariff clash with the US?

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.

Also Read | 6 bilateral meetings in 36 hours – check full itinerary of PM Modi’s US visit

Global response and retaliation

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.

Also Read | Trump announces Ukraine peace talks after call with Putin

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Business NewsNewsUs NewsDonald Trump to announce reciprocal tariffs ahead of PM Modi’s visit, White House confirms
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First Published:13 Feb 2025, 12:45 AM IST
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