US President Donald Trump has imposed a 26% “discounted reciprocal tariff” on India, reducing by half the 52% levies that India applies to American goods. Calling India “very, very tough” on trade, Trump said the move was part of his broader effort to ensure fair treatment for American industries.

“This is Liberation Day—a historic moment for American industry. April 2, 2025, will forever be remembered as the day we reclaimed our economic destiny and set America on the path to renewed prosperity,” Trump said in a speech from the White House Rose Garden, where he announced new reciprocal tariffs on countries imposing high levies on American exports.

Addressing a gathering on a chilly Wednesday afternoon, Trump criticized decades of unfair trade practices by foreign nations. “For too long, America has been looted and exploited by countries, both allies and adversaries,” he said. “Our workers—steelworkers, auto workers, farmers, and skilled craftsmen—have suffered gravely. They watched helplessly as foreign leaders stole our jobs, foreign competitors gutted our factories, and foreign cheaters crushed the American dream.”

Trump Signs Executive Order on Reciprocal Tariffs

Joined by factory workers, auto industry representatives, and members of his Cabinet, Trump signed what he called a “historic Executive Order” instituting reciprocal tariffs on multiple countries.
“Reciprocal. That means they do it to us, and we do it to them. Simple,” Trump said, drawing applause from the crowd.

US Trade Deficit and Tariff Imbalance

Highlighting trade imbalances, Trump pointed out that while the US imposes only a 2.4% tariff on motorcycles, countries like Thailand charge 60%, India 70%, and Vietnam 75%. “For decades, the US has only charged a 2.5% tariff on foreign automobiles, while the EU charges more than 10% and India a staggering 70%,” he said.
Trump also criticized non-monetary trade restrictions, especially those imposed by South Korea, Japan, and other nations.

India's Tariffs and the New 'Discounted Reciprocal Tariff'

Holding up a tariff comparison chart, Trump detailed how countries such as India, China, the European Union, Japan, Taiwan, South Korea, Bangladesh, Sri Lanka, and Pakistan have imposed heavy duties on US products.
India, he said, imposes a 52% tariff on American goods, which includes currency manipulation and trade barriers. The US will now respond with a “discounted reciprocal tariff” of 26% on Indian imports.
“India is very, very tough. Prime Minister Modi is a great friend, but I told him, ‘You’re not treating us fairly.’ For years, we charged India almost nothing while they hit us with massive tariffs,” Trump said.

Past US-India Trade Talks and Tariff Disputes

Prime Minister Narendra Modi had visited Washington, D.C., in February, shortly after Trump began his second term in office. During a joint press conference on February 13, Trump referred to India as the “tariff king” and a “big abuser” of trade rules.
At the time, he had noted that the US trade deficit with India was close to USD 100 billion. Trump and Modi had agreed to negotiate and address these trade disparities, with the goal of signing a fair trade agreement. “We want a level playing field, which we believe we’re entitled to,” Trump said.

Trump: 'We Are Being Very Kind' on Tariffs

While announcing the tariffs, Trump insisted that the US was being “very kind” by charging only half of what other countries impose on American goods.
“For nations that mistreat us, we will calculate their total tariffs, trade barriers, and other unfair practices. And because we are kind—very kind—we will only charge them half of that,” Trump said.
He added that fully reciprocal tariffs would have been harsher for many nations, but the US decided to take a more lenient approach.

'Liberation Day' for American Industry

Concluding his speech, Trump declared April 2, 2025, as “Liberation Day” for the American economy.
“In the years to come, you will look back and say, ‘He was right. This was one of the most important days in our country’s history,’” Trump said, reaffirming his commitment to rebuilding American industry.