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Trump announces reciprocal tariffs on India, set to take effect from April 2

US President Donald Trump has announced reciprocal tariffs on India, stating that American imports will now face the same tariffs as US exports do in India.

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Donald Trump

In his first address to a Joint Session of Congress after beginning his second term, US President Donald Trump reiterated his stance on what he called “very unfair” tariffs imposed by India and several other nations. Trump declared that his administration would impose reciprocal tariffs starting April 2, ensuring that the US levies the same tariff rates on imports as other countries impose on American exports.

“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” Trump stated. He criticized nations such as the European Union, China, Brazil, Mexico, Canada, and India for imposing significantly higher tariffs on American products.

Targeting India’s high auto tariffs

Using India as an example, Trump highlighted that the country charges “auto tariffs higher than 100 percent,” a long-standing complaint he has voiced in the past. He reaffirmed that India would not be exempt from the new tariff policy and claimed he had directly conveyed this stance to Prime Minister Narendra Modi during the latter’s visit to Washington last month.

“Nobody can argue with me on this,” Trump said, emphasizing that reciprocal tariffs are a measure to counter what he perceives as unfair trade policies.

Policy details and global reactions

According to Trump, the new tariff rules will be implemented in a straightforward manner—matching the tariffs imposed on American goods by foreign countries. “Whatever they tariff us, we will tariff them. That’s reciprocal—back and forth,” he stated. He also warned that if non-monetary trade barriers were used to restrict US products, Washington would impose similar restrictions.

The announcement comes amid a series of trade measures targeting major economic partners, including sweeping levies on imports from Mexico, Canada, and China. These tariffs have sparked strong reactions from global leaders, with Canadian Prime Minister Justin Trudeau accusing Trump of undermining Canada’s economy for geopolitical leverage. Trudeau also criticized Washington for targeting close allies while “appeasing” Russia over its actions in Ukraine.

As the deadline for the new tariff measures approaches, international markets and businesses remain on edge, bracing for potential disruptions in trade relations.

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India calls US religious freedom body biased over RSS sanctions demand

India has criticised USCIRF as biased and lacking credibility after the US body urged sanctions against RSS members ahead of Mohan Bhagwat’s New York visit.

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India has criticised the United States Commission on International Religious Freedom (USCIRF) after the US body called for sanctions against members of the Rashtriya Swayamsevak Sangh (RSS) ahead of RSS chief Mohan Bhagwat’s scheduled visit to the United States.

External Affairs Ministry spokesperson Randhir Jaiswal described USCIRF as a “biased organisation” and said it lacked credibility.

“It is a biased organisation. I would say that we should keep away from such organisations as they have their own agenda and lack any credibility,” Jaiswal said.

He also accused the body of making “disparaging and inflammatory remarks” about India and said the USCIRF was unlikely to engage with the country’s “pluralistic framework” or acknowledge the harmonious coexistence of its diverse communities.

USCIRF seeks sanctions against RSS members

USCIRF chair Asif Mahmood opposed Mohan Bhagwat’s upcoming visit to the US and called on the American government to impose sanctions against the RSS. Bhagwat is scheduled to visit New York on August 29.

The US body also urged Washington not to extend diplomatic courtesies to RSS leaders. It described the RSS as an “umbrella organisation” and alleged that its sub-groups had “perpetrated attacks on religious minorities”.

USCIRF said the US government should instead focus on imposing sanctions on RSS members found responsible for freedom of religious belief violations.

USCIRF’s earlier criticism of India

In its annual report released in March, USCIRF criticised India over alleged violations of religious freedom and recommended targeted sanctions against individuals and entities, including the RSS and Research and Analysis Wing.

The commission also recommended designating India as a “country of particular concern”.

USCIRF is an independent, bipartisan US federal government agency that makes policy recommendations to the US President, Secretary of State and Congress and tracks their implementation.

Hindu advocacy group criticises USCIRF

US-based Hindu advocacy group HinduPACT also condemned USCIRF members’ public opposition to Bhagwat’s New York visit.

Ajay Shah, founder and chair of HinduPACT, accused the commission of having “disgraced its mandate” and alleged that its chair’s remarks reflected an anti-Hindu narrative.

Shah also criticised groups including CAIR, IAMC and HfHR, alleging that they had portrayed Hindu self-assertion as extremism.

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PM Modi meets Japanese Defence Minister, pushes India-Japan security ties

PM Modi met Japanese Defence Minister Shinjiro Koizumi in New Delhi and discussed strengthening India-Japan defence and security cooperation.

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Prime Minister Narendra Modi on Thursday, August 20, met Japanese Defence Minister Shinjiro Koizumi in New Delhi and discussed ways to further strengthen defence and security cooperation between India and Japan.

During the meeting, Modi outlined his vision for strengthening the India-Japan Special Strategic and Global Partnership and highlighted the importance of closer defence and security ties in promoting peace, stability and prosperity in the Indo-Pacific and beyond.

PM Modi recalls India-Japan summit discussions

During his meeting with Koizumi, Modi recalled his detailed discussions with Japanese Prime Minister Sanae Takaichi during her visit to India for the 16th India-Japan Annual Summit in July 2026.

The prime minister also appreciated the steady momentum in defence cooperation between the two countries.

According to a statement from the Prime Minister’s Office, Koizumi, who is on an official visit to India, called on Modi on Thursday.

Focus on defence cooperation and Make in India

Modi also highlighted opportunities for Japanese companies and startups to partner with Indian firms in the defence sector.

The discussions included possibilities for co-development and co-production under the Make in India initiative, according to the statement.

Later, Modi said in a post on X that he had an “excellent conversation” with Koizumi on deepening defence and security ties between India and Japan.

He said the Special Strategic and Global Partnership between the two countries is an important anchor for peace, stability and prosperity in the Indo-Pacific and beyond.

Japan reaffirms commitment to deeper ties

Koizumi briefed Modi on the progress of bilateral defence cooperation during the meeting.

The Japanese Defence Minister also reaffirmed Japan’s continued commitment to deepening ties with India, the Prime Minister’s Office said.

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Trump warns Iran’s trading partners of economic action: India’s exports to take a hit?

Trump’s warning against countries supporting Iran could create payment, shipping and logistics challenges for Indian exporters.

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Donald Trump

US President Donald Trump has warned countries, financial institutions and businesses against providing Iran with what he called an “economic lifeline”, saying those that continue supporting Tehran could face “TREMENDOUS” economic consequences.

Trump’s warning comes as the United States steps up economic pressure on Iran. For India, the development could have implications for exporters, particularly those shipping agricultural products, food items and pharmaceuticals to the Iranian market.

India’s trade with Iran has already declined sharply over the years. However, Indian exporters continue to maintain a trade surplus with Tehran, making the potential impact of tighter US sanctions an issue to watch.

What did Trump say about Iran?

Trump has announced what he described as the “most crushing economic operation” against Iran and said the US would pursue economic warfare and isolation against Tehran.

His warning extends beyond Iran itself. Trump said countries, financial institutions and businesses that provide Tehran with financial or commercial support could face severe consequences.

The activities cited in his warning include oil smuggling, cash transfers, currency swap lines, exchange houses, ship registries and front companies.

“This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump said.

He also warned that countries allowing their financial institutions, businesses, airports or government entities to support Iran could face “TREMENDOUS Economic Consequences”.

How much does India trade with Iran?

India remains an important trading partner of Iran, although bilateral trade has fallen significantly from previous levels.

According to data from the Indian Embassy in Tehran cited in the report, India’s exports to Iran stood at $1.25 billion in 2025-26, while imports from Iran were around $370 million. This gave India a trade surplus of approximately $880 million.

The scale of bilateral trade is considerably smaller than it was several years ago.

In 2018-19, India-Iran trade was worth $17.03 billion. India’s imports from Iran stood at $13.53 billion that year, while exports were $3.51 billion.

By 2024-25, total bilateral trade had fallen to $1.68 billion.

This sharp decline means India’s overall economic exposure to Iran is now relatively limited compared with the size of the Indian economy. However, businesses that continue to depend on the Iranian market could still face difficulties if US sanctions and enforcement are tightened.

What does India export to Iran?

India’s trade relationship with Iran extends beyond energy.

Major Indian exports to Iran include:

  • Basmati rice
  • Tea
  • Sugar
  • Fresh fruits
  • Drugs and pharmaceuticals
  • Spices
  • Cereals and other food products

Iran also exports products including pistachios, dates, apples and kiwis to India.

Any disruption to this trade could therefore affect businesses involved in agricultural products, food items and pharmaceuticals.

Why could Trump’s warning affect Indian exporters?

The immediate risk is not necessarily that India’s entire trade with Iran will stop.

Instead, Indian exporters could face greater difficulties with payments, shipping and logistics if the US expands sanctions or increases enforcement against businesses and financial institutions dealing with Tehran.

Shipping disruptions and higher freight costs could add to the pressure. The Strait of Hormuz remains a key pressure point, while vessel rerouting, elevated freight rates and tighter container availability can increase the cost and complexity of international trade.

For exporters with direct exposure to Iran, such disruptions could make shipments more expensive and payments more complicated.

India’s exports are finding other markets

India’s broader export performance provides some cushion against a potential slowdown in trade with Iran.

India’s merchandise exports reached a record $44.24 billion in July, representing a 19.6 per cent increase from a year earlier, according to the figures cited in the report.

Engineering goods exports rose 17.7 per cent to $12.24 billion, while electronics exports jumped 57.4 per cent to around $5.9 billion.

Exports to the Middle East also increased 8.6 per cent to $5.7 billion.

India has also been expanding its trade across several other markets. In July, exports to China increased 64.57 per cent year-on-year to $2.2 billion, while shipments to Singapore rose 83.7 per cent to $1.6 billion.

Exports to the US increased 12.85 per cent to $9.02 billion.

The diversification of India’s export markets could help businesses reduce their dependence on individual markets if geopolitical tensions disrupt trade with Iran.

Will Trump’s Iran warning hurt India?

Trump’s warning could affect Indian exporters doing business with Iran through higher shipping costs, payment complications and weaker demand if economic pressure on Tehran intensifies.

The impact is likely to be more significant for businesses with direct exposure to the Iranian market than for the Indian economy as a whole.

India-Iran trade has already contracted substantially from its earlier levels. With Indian exporters increasingly accessing markets across regions including ASEAN, Africa, South Asia and North-East Asia, India may be better placed to absorb the impact of any further disruption in Iran trade.

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