World
India
US President Donald Trump has committed to implementing “reciprocal tariffs” on foreign countries, with plans to sign an executive order as soon as today or tomorrow. This bold move signals a potential escalation in the ongoing trade war, with new tariffs potentially targeting emerging market economies like India and Thailand.
What Are Reciprocal Tariffs?
Trump’s reciprocal tariffs involve adjusting tariff rates on US imports to match the rates that other countries charge on American goods. During his campaign, he promised a straightforward policy: “An eye for an eye, a tariff for a tariff.” This means the US would impose the same tariffs on foreign imports as those nations place on US products.
The Timing of Trump’s Announcement
Speaking from the Oval Office, Trump confirmed he could sign the order later Wednesday or Thursday morning, potentially unveiling a major new front in the ongoing trade conflict. The announcement is expected to precede his meeting with Indian Prime Minister Narendra Modi on Thursday, a crucial diplomatic moment.
Broader Impact of the Tariffs
This new tariff plan is expected to affect not just Canada and Mexico, but could also impact countries in emerging markets, particularly those with high tariffs on US imports. Analysts predict that the imposition of these reciprocal duties could lead to an increase in tariff rates on imports from places like India and Thailand.
Steel and Aluminum Tariffs: A New Hurdle
Earlier in February, Trump announced sweeping 25% tariffs on steel and aluminum imports. While Canada and Mexico were initially exempted, this reprieve lasts for just 30 days. If the exemptions end, US duties on Canadian and Mexican steel and aluminum could rise to as high as 50%, further intensifying the trade dispute.
Canada and Mexico’s Response
In Washington, Canada’s Finance Minister Dominic LeBlanc expressed caution, emphasizing that Ottawa would wait for the US decision on tariffs. He mentioned ongoing talks to strike an economic deal with the US. Meanwhile, Mexico’s President Claudia Sheinbaum noted that her country’s economy minister had been engaging with US counterparts to discuss potential solutions.
ALSO READ: Bharti Airtel Q3 Results 2025: Net profit zooms 505% to Rs 14,781.2 cr
