US President Donald Trump has said his administration is “not looking for leverage” in setting tariff rates with other countries, but is instead aiming for fairness and reciprocity in trade.
Speaking to reporters in Pennsylvania on Sunday night, Trump said the US seeks reciprocal tariffs “wherever we can” and claimed his policy would generate “hundreds of billions of dollars” for the American economy.
The president also took a swipe at former president Joe Biden, accusing him of economic mismanagement.
Impact on India
Trump’s remarks come amid ongoing negotiations with several countries, including India, where his administration has imposed a 25% blanket tariff on imports.
Despite Trump’s criticism of India’s trade ties with Russia — calling both countries “dead economies” — a sixth round of trade talks is expected in August when a US delegation visits New Delhi.
Indian officials have indicated the talks will stick to the framework agreed on March 29 and aim for an “early harvest” trade deal by the end of this month, irrespective of political rhetoric.
Possible Bargaining Tool
Some analysts believe the 25% tariff may be a negotiating tactic rather than a fixed policy. Trump, however, acknowledged that equal reciprocal rates may not be possible with every country.
Historically, developing economies — including India — have levied higher tariffs on imports from richer nations to protect domestic industries, while paying lower tariffs when exporting to developed markets. Trump says this needs to change so that US manufacturers aren’t undercut by cheaper imports from countries like China.
