Trump Threatens Tariffs on India, China, and Other Countries Over Trade Imbalances

US President Donald Trump has threatened to impose tariffs on countries such as India, China, and Brazil, claiming they harm the American economy through high tariffs. Speaking to House Republicans at a retreat in Florida, Trump stated that Washington would take action against nations that he believes disadvantage the US economically.

“We’re going to put tariffs on countries that really mean harm to us. They may want to make their own countries better, but at the expense of the US,” Trump said. He singled out China, India, and Brazil for their tariff policies, emphasizing that the US would no longer tolerate these practices as part of his "America First" agenda.

Trump further outlined his vision for a fairer trade system that would generate revenue for the US, making the country "very rich again" in the process. He promised that this shift would happen quickly and claimed that more manufacturing plants would be built in the US, motivated by tax incentives and the removal of tariffs on domestically produced goods.

In response to these statements, India’s Commerce and Industry Ministry has initiated talks to prepare for potential changes in US trade policy. These discussions are focused on addressing the possibility of new tariffs on Indian exports to the US under the Trump administration.

The US remains India’s largest trade partner, with bilateral trade reaching nearly $120 billion in FY24. While India’s trade relationship with the US is favorable, Trump’s policies could affect sectors ranging from textiles to electronics and engineering, which are major exports from India. Over the past decade, India’s dependence on the US has increased, with the US accounting for 18% of India’s exports in 2022–23, up from 10% in 2010–11.

Trump's actions follow his recent instructions to the US Commerce and Treasury departments to investigate the causes of America’s persistent trade deficits and the launch of a new "External Revenue Service" (ERS) to collect tariffs from foreign governments.