On February 1, U.S. President Donald Trump announced a 25% tariff on Canada and Mexico, and an additional 10% tariff on China. However, India was not mentioned during this announcement. Earlier, Trump had threatened to impose high tariffs on countries like India, China, and Brazil. Trump has often threatened 100% tariffs on BRICS countries, which include India, Brazil, and China. Additionally, Trump has previously complained about India imposing high tariffs on U.S. products. This raised concerns that India too could face tariffs.

According to the Research and Information System (RIS), the U.S. faces the largest trade deficits with China, Mexico, and Canada. The U.S. faces a 30.2% trade deficit with China, 19% with Mexico, and 14% with Canada. These three countries are responsible for nearly $650 billion of the U.S. trade deficit. In 2023, the U.S. had a trade deficit of $317 billion with China, $200 billion with Mexico, and $153 billion with Canada. In contrast, India accounted for just 3.2% of the U.S. trade deficit, or $36 billion. India ranks 9th on the list of countries with which the U.S. has the largest trade deficit.

On February 1, Trump said that the tariffs on Canada, Mexico, and China were not merely threats for negotiation. He stated that these three countries were responsible for a significant trade deficit with the U.S.

According to international trade experts, India has begun reducing tariffs on some U.S. goods in response to Trump's tariffs. In the budget presented on Saturday, India reduced duties on U.S. products like motorcycles with engines under 1600cc, satellite ground installations, and synthetic flavoring essences.

On February 2, China's Ministry of Commerce issued a statement announcing its decision to challenge Trump's 10% tariff in the World Trade Organization (WTO). China argued that the U.S. tariffs violated WTO rules and called for dialogue to strengthen cooperation rather than escalate tensions.