Trump Announces New Reciprocal Tariffs Ahead Of High-Stakes Meeting With PM Modi

In a bold all-caps post on his Truth Social platform on Thursday, Trump signalled a significant shift in his administration's trade strategy. "Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!," Trump wrote. In a follow-up post, Trump announced he would address the tariffs in a news conference from the Oval Office at 1 p.m. Washington time.

The tariffs announced by the president are not expected to take effect for several weeks or possibly months, according to sources familiar with the matter. Trump has embraced the reciprocal tariff plan as a central element of his broader effort to increase US levies. He stated that the policy would target countries with higher average tariff rates than the US, ensuring that American tariffs rise to match theirs.

"If they charge us, we charge them," he told reporters on Sunday, confirming his plans for a formal announcement this week.

"The United States is one of the most open economies in the world, yet our trading partners keep their markets closed to our exports," according to a White House fact sheet outlining the executive action. "This lack of reciprocity is unfair and contributes to our large and persistent annual trade deficit."

The concept of reciprocal tariffs is not new in US trade policy. Trump, however, has been vocal about his dissatisfaction with current trade agreements, often citing countries like India, Canada, Mexico, China, and the EU as having unfair advantages over the United States.

Howard Lutnick, Trump's nominee for commerce secretary, stated that the measures could be in place as early as April 2. He will lead the initiative alongside Jamieson Greer, Trump's choice for trade representative, and other key advisers.

The announcement precedes a high-stakes meeting with Prime Minister Narendra Modi, which will take place soon. India has historically maintained higher tariff rates on certain American goods, making it a potential target of the new policy. The timing of Trump's announcement suggests it may play a role in negotiations with the Indian leader.

The newly revealed tariffs also hint at a possible shift in US-India trade relations. Given the strong economic ties between the two nations, there is an opportunity for both leaders to strike a deal that benefits their respective economies.