Donald Trump set to announce reciprocal tariffs to address ‘unfair trade practices’

US President Donald Trump will seek to “address decades of unfair trade practices” with the announcement Wednesday of reciprocal tariffs that will be closely watched worldwide, including in India, the White House said.  

President Trump has hyped the announcement as “Liberation Day” but has sought to dial down anxiety about it, saying the tariffs will be “more lenient than reciprocal” and “kind.” No details are available yet about the breadth and scope of the coming tariffs.  

White House emphasises trade reform  

“Tomorrow, the President will be addressing the decades of unfair trade practices that have ripped our country off and American workers off,” White House spokesperson Karoline Levitt said on Tuesday.  

“It has hollowed out our middle class. It has destroyed our heartland, and the President is focused on re-shifting our global economy to ensure that America is once again the manufacturing superpower of the world,” she added.

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Levitt further noted that Trump is open to negotiations but remains committed to correcting past trade imbalances. “Certainly, the President is always up to take a phone call, always up for a good negotiation,” she said in response to a question about potential talks following the tariff announcement. “But he is very much focused on fixing the wrongs of the past and showing that American workers have a fair shake.”  

Potential targets and global implications  

Reports indicate that discussions among Trump’s aides have revolved around multiple tariff options: a 15 per cent tariff on a group of nations labeled the “Dirty 15” by Treasury Secretary Scott Bessent or a universal tariff imposed on all countries.  

A federal register notice has identified possible targets, including India, Brazil, Canada, China, the European Union, Indonesia, Japan, Malaysia, Mexico, South Africa, South Korea, Switzerland, Taiwan, Thailand, Turkey, and Vietnam.  

Trump told reporters Monday that some countries, including India and Europe, have already begun adjusting their tariffs in anticipation of the announcement. However, as indicated by the White House, negotiations remain a possibility.  

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India-US trade relations in focus  

Trump first outlined his plan for reciprocal tariffs in his inauguration speech, vowing to eliminate “destructive trade deficits.” The new tariffs are expected to take effect on April 2, deliberately avoiding April 1 due to its association with “April Fool’s Day.”  

These new tariffs will be in addition to existing ones Trump imposed on imports from Canada, Mexico, and China—25 per cent for the former and between 2 per cent and 10 per cent for the latter—along with a 25 per cent tariff on all imported automobiles and auto parts.  

Trump has frequently cited India’s trade policies, calling its tariffs “brutal.” The US goods trade deficit with India stood at 45.7 billion dollars in 2024, a 5.4 per cent increase from 2023, according to the office of the US Trade Representative (USTR). Total trade between the two nations reached 129.2 billion dollars in 2024, with US exports to India amounting to 41.8 billion dollars and imports from India rising to 87.4 billion dollars.  

Both nations have engaged in trade discussions ahead of the anticipated tariff rollout, but details remain undisclosed. “I think it’s going to work out very well, between India and our country,” Trump said Friday when asked about negotiations.  

In a recent interview with Newsmax, Trump reiterated his stance, stating, “I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.” He added that while there are ongoing discussions about potential exemptions, “not too many, not too many exceptions.”

(With inputs from IANS)