Trump says India charges over 100% auto tariffs; reciprocal tariffs to kick in from April 2

With the newly elected US administration imposing reciprocal tariffs on Canada, China, and Mexico, US President Donald Trump has once again signalled concerns for India over potential trade barriers. Reinforcing his stance on tariffs, Trump on Tuesday criticised what he called “unfair” measures by both “friends and foes.”

“Other countries have used tariffs against us for decades, and now it's our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada, and countless other nations charge us tremendously higher tariffs than we charge them. This is happening by friend and foe,” said Trump during his address of a joint session of US Congress.

The tariffs on countries including India are set to take effect on April 2, potentially impacting Indian automakers.

“(From) April 2nd, reciprocal tariffs (will) kick in and, whatever they tax us, we will tax them. If they do non-monetary tariffs to keep us out of their market, then we will do non-monetary barriers to keep them out of our market,” said Trump.

Trump stated that businesses manufacturing products outside the US will be subject to tariffs.

“If you don't make your product in America, however, under the Trump administration, you will pay a tariff, and in some cases, a rather large one,” he added.

Highlighting high tariffs on US auto exports to India, Trump said India charges over 100% in auto tariffs, a system he deemed unjust.

“It's very unfair. India charges US auto tariffs higher than 100%,” Trump added.

Trump also pointed out that China and South Korea impose higher average tariffs on the US, despite the latter even receiving American military aid.

“Chinas average tariff on our products is twice (of) what we charge them and South Korea’s average tariff is 4 times.

Trump delivered his first address to Congress following his re-election on Tuesday, facing protests from Democratic lawmakers who interrupted, held up signs, and walked out. The speech came amid market turmoil following his sweeping new tariffs on Mexico, Canada, and China—moves that have shaken US foreign policy and escalated trade tensions with key allies. On Tuesday, the US had imposed a 25% tariff on imports from Mexico and Canada, along with a 20% tariff on Chinese imports.

Trump acknowledged the economic challenges and financial burden the tariffs may place on the US Treasury but emphasised that the move is essential for boosting domestic industries. He defended the policy as a means to revitalise the economy, asserting that it would drive unprecedented job creation.