Trump calls India, China high tariff nations, vows to establish fair system
New Delhi, Jan 28, 2025
While the memorandum did not specify the countries on which the US would impose higher tariffs, Trump has separately mentioned that high tariffs would be slapped
United States (US) President Donald Trump named countries such as India, China, and Brazil, along with other nations, for being "tremendous tariff makers" and vowed to soon establish a "fair system" that would channel revenue into the American government coffers.
“We're going to put tariffs on outside countries and outside people that really mean harm to us. Well, they mean us harm, but they basically want to make their country good,” Trump said, adding that tariffs would be imposed on countries that "harm" America.
“Look at what others do. China is a tremendous tariff maker, and India and Brazil, and so many other countries,” Trump said at an event in Florida on Monday.
After assuming office as the US President last week, Trump immediately laid out a protectionist "America First Trade Policy," which includes imposing global "supplemental tariffs" to tackle "unfair and unbalanced trade."
While the memorandum did not specify the countries on which the US would impose higher tariffs, Trump has separately mentioned that high tariffs would be slapped on Canada and Mexico from February 1. However, this is the first time since taking office that Trump has called out India for being a high-tariff nation.
Trump further said that America is going to be "very rich" again and that this transformation would happen "quickly." “It’s time for the United States to return to a system that made us richer and more powerful than ever before,” he added.
He reiterated that instead of taxing citizens to enrich foreign nations, the US should be imposing tariffs and taxing nations to enrich American citizens. “Under the America First economic model, as tariffs on other countries go up, taxes on American workers and businesses will come down, and massive numbers of jobs and factories will come home,” he said.
The memorandum on the America First Trade Policy outlined the need for a review of existing trade agreements, and an External Revenue Service (ERS) will be set up to collect tariffs, duties, and other foreign-related revenues.
Trump also reiterated his threat to the 10-member BRICS grouping with a 100 per cent tariff if the bloc takes steps to replace the US dollar in global trade.
“If the BRICS nations want to do that, that’s okay, but we are going to put at least 100 per cent tariff on the business that they do with the United States,” he said last week.
[The Business Standard]
