Speaking at the “Make America Wealthy Again” event in the White House Rose Garden, US President Donald Trump announced a 26% reciprocal tariff on India, citing trade imbalances. He acknowledged that while the imposed tariffs were not entirely reciprocal, they marked progress toward fairer trade.
Trump proclaimed April 2, 2025, as “Liberation Day,” calling it a long-awaited milestone. “Today represents the resurgence of American industry and the reclaiming of our economic future. We will restore America’s prosperity.”
During the announcement, Trump presented a chart comparing tariffs imposed by India, China, the UK, and the European Union, alongside the new US reciprocal tariffs. As indicated in the chart, India implemented a 52% tariff, incorporating trade restrictions and currency regulations. In response, the US imposed a reduced 26% tariff.
Trump specifically called out India’s high tariffs on motorcycles, pointing out that while the US charges only 2.4%, India levies a 70% tariff, with Vietnam and Thailand imposing even higher rates. He also mentioned the long-standing issue of automobile tariffs, noting that the US had kept them at 2.5% for decades, whereas the European Union charged over 10% and imposed an additional 20% VAT.
The president also criticized non-monetary trade barriers from countries like South Korea and Japan, calling them significant obstacles for American businesses. He emphasized that these new tariffs aimed to balance trade relationships and ensure fair competition for US industries.
