On April 2, US President Donald Trump announced reciprocal tariffs on over 180 countries, including India.
This move, which Trump described as “America’s economic freedom day,” aims to reduce the US trade deficit and boost domestic manufacturing.
Trump stated that a minimum tariff of 10% would be imposed on all countries, effective from April 5. Countries facing higher tariffs will see them take effect from April 8.
Asian and European nations are hit the hardest, with China facing the highest additional tariff of 34%. India will be hit with a 26% tariff, while European countries will face a 20% tariff.
Trump emphasized that the US has been mistreated for decades, and this move is to hold countries accountable for unfair trade practices.
This decision signals a major shift in global trade dynamics, raising fears of a potential trade war.
Impact on India
India will face a 26% tariff, which could significantly affect sectors such as agriculture, textiles, and motorcycles.
Trump pointed out that India imposes high tariffs on American agricultural products (39%) and motorcycles (30-40%), while the US charges much lower tariffs (5% and 2.4%, respectively) on Indian goods.
Although Indian officials have not responded officially, experts suggest India may seek exemptions through negotiations.
Impact on Asia and Europe
Countries in Asia, such as China, Vietnam, Taiwan, Japan, and South Korea, are expected to be heavily impacted due to their large exports to the US.
These tariffs could disrupt global supply chains, especially in industries like semiconductors, automobiles, and consumer electronics.
In Europe, Germany’s automobile sector and France’s wine industry may suffer the most. The European Union has already threatened retaliatory tariffs against the US.
Global Market Turmoil
Asian markets dropped sharply after Trump’s announcement. Japan’s Nikkei index fell 3%, and South Korea’s Kospi dropped 2%.
In the US, stock market futures saw a decline, with Nasdaq-100 futures down 4.2% and Dow Jones futures down 2.3%.
China has said it will file a complaint with the World Trade Organization (WTO), while the European Union has warned of retaliatory actions.
Full List of Countries Affected by Trump’s Reciprocal Tariffs
Trump’s reciprocal tariffs mean that any tax a country imposes on US goods will be matched by the US on those countries’ goods.
Below is the list of countries and their proposed tariff rates:
China: 34% (total 54%)
European Union: 20%
Vietnam: 46%
Taiwan: 32%
Japan: 24%
India: 26%
South Korea: 25%
Thailand: 36%
Switzerland: 31%
Indonesia: 32%
Malaysia: 24%
Cambodia: 49%
United Kingdom: 10%
South Africa: 30%
Brazil: 10%
Bangladesh: 37%
Singapore: 10%
Israel: 17%
Philippines: 17%
Chile: 10%
Australia: 10%
Pakistan: 29%
Turkey: 10%
Sri Lanka: 44%
Colombia: 10%
Peru: 10%
Nicaragua: 18%
Norway: 15%
Costa Rica: 10%
Jordan: 20%
Dominican Republic: 10%
United Arab Emirates: 10%
New Zealand: 10%
Argentina: 10%
Ecuador: 10%
Guatemala: 10%
Honduras: 10%
Madagascar: 47%
Myanmar (Burma): 44%
Tunisia: 28%
Kazakhstan: 27%
Serbia: 37%
Egypt: 10%
Saudi Arabia: 10%
El Salvador: 10%
Côte d’Ivoire: 21%
Laos: 48%
Botswana: 37%
Trinidad and Tobago: 10%
Morocco: 10%
Algeria: 30%
Oman: 10%
Uruguay: 10%
Bahamas: 10%
Lesotho: 50%
Ukraine: 10%
Bahrain: 10%
Queue: 10%
Mauritius: 40%
Fiji: 32%
Iceland: 10%
Kenya: 10%
Liechtenstein: 37%
Guyana: 38%
Haiti: 10%
Bosnia and Herzegovina: 35%
Nigeria: 14%
Namibia: 21%
Brunei: 24%
Bolivia: 10%
Panama: 10%
Venezuela: 15%
North Macedonia: 33%
Ethiopia: 10%
Ghana: 10%
Moldova: 31%
Angola: 32%
Democratic Republic of the Congo: 11%
Jamaica: 10%
Note: Canada and Mexico are exempted due to separate agreements with the US.
This list shows the diverse global impact, with some nations facing very high tariffs, while others, such as Canada and Mexico, are excluded due to prior agreements with the US.
