Trump: “If they tax us, we tax them the same amount”; Reciprocal tariffs on India, Brazil

US President-elect Donald Trump has announced his intention to implement reciprocal tariffs on countries that impose high import duties on American products. Specifically, Trump pointed to India and Brazil as examples of countries that impose significant tariffs on US goods. He explained that under his administration, the United States would impose tariffs of the same magnitude on these countries if they continued to levy high duties on American exports.

Trump’s comments came during a press briefing at Mar-a-Lago, where he discussed his administration’s trade policy. He highlighted the issue of high tariffs, particularly from India, on US products such as motorcycles, medical devices, and agricultural goods. Trump criticized India for imposing tariffs as high as 100% on certain US goods. He made it clear that if countries like India tax US products at such high rates, the US would respond in kind. “If they tax us, we tax them the same amount,” Trump stated, emphasizing the concept of reciprocity in international trade relations.

In his remarks, Trump also mentioned Brazil, labeling it as another country that imposes high tariffs on American products. He argued that while countries like India and Brazil continue to charge substantial tariffs on US goods, the US has not reciprocated in kind. This, according to Trump, has created an imbalance in trade. He stressed that under his leadership, the US would no longer accept such one-sided trade practices and would ensure that tariffs are equal on both sides.

Howard Lutnick, Trump’s pick for Commerce Secretary, reinforced the president-elect’s stance on reciprocal tariffs, stating that reciprocity would be a cornerstone of the new administration’s trade policy. Lutnick reiterated that the US would respond to trade barriers imposed by other nations with similar measures. “How you treat us is how you should expect to be treated,” Lutnick said, emphasizing the administration’s commitment to fairness in trade.

The trade relationship between the US and India has expanded significantly in recent years, with bilateral trade reaching approximately $120 billion in the fiscal year 2024. India is one of the largest exporters of goods to the US, including pharmaceuticals, textiles, and technology products. However, trade tensions have persisted due to India’s high tariffs on specific US goods. These tariffs, particularly on motorcycles, medical equipment, and agricultural products, have been a point of contention in the trade relationship between the two countries.

Despite the concerns raised by the US, India’s government has expressed a desire to maintain strong trade relations with the US. Indian External Affairs Minister S. Jaishankar has reiterated that India has no interest in undermining the US dollar, a comment that addressed previous remarks made by Trump regarding BRICS nations’ exploration of alternative currencies. Jaishankar also emphasized that the strong partnership between India and the US is expected to continue, even with ongoing trade issues. The outgoing Biden administration also expressed confidence that the India-US relationship would remain a priority for the incoming Trump administration, underscoring the importance of continued high-level engagement between the two nations.