US President Donald Trump has announced plans to impose reciprocal tariffs on countries like India and China, aiming to align US import duties with those imposed by these nations on American goods. This move is part of Trump's broader strategy to address what he perceives as unfair trade practices and high tariffs imposed by other countries.

The policy involves charging the same tariffs that India or China impose on US goods. For example, if India charges a 100% tariff on certain US products, the US would apply a similar tariff on Indian imports.

Trump has criticized India's high tariff structure, describing it as one of the most challenging places for business due to its duties. He cited Harley-Davidson as an example where high Indian tariffs forced the company to set up local manufacturing.

Analysts suggest that while this could lead to trade tensions, its impact might be limited for India. A State Bank of India report estimates that Indian exports could decline by only 3-3.5% even with significant reciprocal tariffs.

The imposition of reciprocal tariffs could alter bilateral trade relations between the US and countries like India and China.

While some analysts predict limited effects due to diversified export strategies, others warn about potential disruptions in global commerce.

This move may strain diplomatic ties between involved nations as they navigate new trade terms.

Trump's announcement reflects his administration's push for what it considers fairer international trade practices but may complicate economic interactions with key trading partners like India and China.

ANI