Trump Signs Executive Order on Reciprocal Tariffs, Targets India’s 52% Levies on US Goods

New York/Washington, April 3, 2025 — In a dramatic move aimed at reshaping U.S. trade policy, President Donald Trump signed an executive order on Wednesday implementing reciprocal tariffs, specifically spotlighting India’s high import duties on American goods. The measure marks a renewed push by the Trump administration to address what it deems unfair trade practices contributing to the United States' persistent goods trade deficits.

'Liberation Day': Trump Announces New Tariff Policy from the Rose Garden​

Standing in the White House Rose Garden, Trump proclaimed April 2, 2025, as “Liberation Day,” calling it the rebirth of American industry. The executive order, officially titled ‘Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,’ sets the groundwork for imposing matching tariffs on countries with disproportionately high trade duties.

Trump specifically called out India, noting its average Most-Favoured Nation (MFN) tariff rate of 17%, significantly higher than the U.S. average of 3.3%, according to WTO figures cited in the executive order.

India Among Countries with Highest Tariffs on US Goods​

The fact sheet accompanying the executive order highlights stark disparities in global tariff rates:

• Passenger vehicles: U.S. – 2.5%, India – 70%, EU – 10%, China – 15%
• Network switches and routers: U.S. – 0%, India – 10%
• Ethanol: U.S. – 2.5%, Brazil – 18%, Indonesia – 30%
• Rice in the husk: U.S. – 2.7%, India – 80%, Malaysia – 40%
• Apples: U.S. – duty-free, India – 50%, Turkey – 60.3%

Trump accused India of not honoring reciprocal trade norms and announced a 26% “discounted reciprocal tariff” on Indian goods, half the 52% rate that he claimed India levies on American exports.

Trump Criticizes Global Trade Partners​

Brandishing a chart with data on global tariff disparities, Trump named countries including China, the European Union, Japan, Taiwan, South Korea, Bangladesh, Sri Lanka, and Pakistan, asserting that they have long taken advantage of the United States. Regarding India, Trump remarked:

“India, very, very tough. The Prime Minister just left. He’s a great friend of mine, but I said, ‘You’re not treating us right.’ They charge us 52%. We charge them almost nothing, for years and decades.”

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Prime Minister Narendra Modi had visited Washington in February, shortly after Trump began his second term in office.

National Emergency Declared Over Trade Deficits​

The order declares a national emergency, stating that the lack of reciprocity in trade relationships and structural imbalances in the global trading system pose a threat to U.S. national security and economic stability.

Trump criticized the post-World War II economic model, stating that the belief that U.S. trade liberalization would lead to global economic balance was “incorrect.” Instead, he argued that America has been burdened with large and persistent trade deficits while trading partners benefited from protectionist policies.

New Tariffs on 185 Nations​

Under the new directive, the U.S. will impose:

• A 10% baseline tariff on all imports from April 5, 2025
• Individualized reciprocal tariffs on countries with the largest trade imbalances from April 9, 2025

With this sweeping executive action, Trump aims to reassert American leverage in global trade negotiations, starting with nations like India that maintain steep tariff barriers.