Donald Trump will announce new reciprocal rates tonight

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Donald Trump's 'reciprocal tariffs' Truth Social post early Thursday (6.46am EST, 5.16pm IST) - hours before he meets Prime Minister Narendra Modi in Washington, D.C. - has reconfirmed, if confirmation were necessary, that much, if not all, of the conversation between them will focus on import duties, and underscored the US President's continuing fondness to weaponise trade tariffs.


In a brief post, with the trademark self-congratulation, Trump wrote, "THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!!"


"MAKE AMERICA GREAT AGAIN!!!"


The 'reciprocal tariffs' post was an echo from Wednesday, when he committed to orders that could open new fronts in a fast-growing trade war with other nations, including allies.


Donald Trump said he would hold a news conference on reciprocal tariffs at the White House at 1:00 pm local time (which means 11:30 pm IST). 

News Agency Explains | 

What Are Reciprocal Tariffs And Who Might Be Affected?


The US President has insisted that his 'reciprocal tariffs' system - essentially an 'eye for an eye' response to countries that have import duties on American products - is "the only fair way to trade".





The White House had said Wednesday that Trump's 'reciprocal tariff' plan could be announced before his meeting with PM Modi later today.

READ | 

Trump To Sign Order On Reciprocal Tariffs Ahead Of PM Modi's US Visit


Should this, in fact, happen, it will be seen, at least by the Trump administration, as sending the world a message about the US' position on tariffs.

PM Modi In The US

Mr Modi reached the United States earlier today for a first bilateral meet since Trump was elected to a second term in November; he did so on the back of a hardline nationalist agenda that included promises to deport illegal immigrants and jumpstart a stuttering manufacturing sector.

READ | 

PM In US, Tariffs, Immigration Likely On Agenda In Trump Meet


Action on the former front included sending a military planeload of 104 Indians who entered the US illegally. The manner of deportation - the deportees were shackled - triggered a row in India.

READ | 

"You'll Be Removed": US Border Patrol's Video Of Indians In Chains


On the latter front, Trump slapped 25 per cent tariffs on steel and aluminium imports, a move he hopes will boost production, and consumption, of the same products made by US companies.


The 25 per cent tariff applies to India too (where this week it caused a 1,000+ point crash in the stock market) and that is what the PM will be expected to raise during his talks with Trump.


India is not a particularly large supplier of steel to the US, but it is one of the world's largest primary producers of aluminium and America is its top export market.

READ | 

Trump Tariffs Spark Meltdown, Sensex Crashes Over 1,000 Points


Aluminium exports to the US, therefore, could see a drop. Producers - such as Vedanta and Hindalco - will eventually find alternative markets, but it will take time for those to absorb the excess.

READ | 

"Chance To Build On Our Collaboration": PM Modi On Meeting Trump In US


Ahead of his visit to the US, the Prime Minister spoke of the "collaboration" between himself and Trump during the latter's first term (2017-2021) and that he hoped strong personal ties would help the India-US partnership deepen in crucial sectors like technology, trade, and defence.

Trump Targets India

Trump has previously called India a "very big abuser" on trade, and his top economic adviser Kevin Hassett singled out the country as having "enormously high" tariffs in a CNBC interview.


Last month he named India, Brazil, and China as countries "mean us harm".

READ | 

"America First": Trump Vows Tariffs On Nations That "Mean To Harm" US


Amid Trump's tirade on tariffs, India this month slashed custom duties on import of American products, such as high-end motorcycles and cars, and smartphone components, in a move that is expected to benefit American corporate giants like Harley-Davidson, Tesla, and Apple.

READ | 

Amid Tariff Threats, India Cuts Import Duty On US Bikes, Cars


However, Finance Minister Nirmala Sitharaman has said custom duty rationalisation was not India's response to Trump's tariff announcements. "We are looking to strengthen the foundation of the Indian economy," she told News Agency in an exclusive post-Union Budget 2025 interview.

Tariffs In Trump 1.0 And 2.0

Trump introduced similar tariffs during his first term (2017-2021) but then made concessions, i.e., duty-free quotas, to some nations, such as Canada and Mexico, and his successor, Joe Biden, negotiated further exemptions for Britain, Japan, and the European Union.


The US did see a bump in manufacturing employment as a result of tax cuts in Trump's first term, but things changed after he introduced the steel and aluminum tariffs in March 2018.


In 2019, the first full year after those tariffs took effect, the US lost manufacturing jobs and the broader factory sector entered a slump with industrial production falling.


With input from agencies


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