On February 13, just a few hours before his meeting with Prime Minister Narendra Modi, U.S. President Donald Trump announced the imposition of a reciprocal tax. According to this new policy, the United States will now impose a tax on imports from countries equal to the tariff these countries place on American products and services. This decision is in line with Trump's campaign promise.
Although President Trump's decision is not specifically aimed at any particular country, it is expected to have an impact on countries like Mexico, China, and India. This is because India is among the countries that impose higher taxes on U.S. products. Trump has repeatedly stated that India is one of the countries that impose the highest tariffs on American products. It remains to be seen how much this issue will be discussed during the Modi-Trump meeting.
After signing the executive order related to the new policy, Trump announced, "We will apply the same tariffs that other countries impose on us. No more, no less. We will make decisions based on each country's tariffs." Trump has pointed out that many countries have imposed higher taxes on U.S. products.