'Modi a friend but..': Why Trump imposed 26% India tariffs
What's the story
United States President Donald Trump has announced a 26% reciprocal tariff on Indian goods.
The decision comes in response to India's high import duties, which he termed "very, very tough."
Addressing the audience from the White House Rose Garden, Trump said, "The Prime Minister (Narendra Modi) just left. He's a great friend of mine, but I said, 'You're a friend of mine, but you're not treating us right.' They charge us 52%. We charge them almost nothing...decades."
Trade concerns
Trump's statement on trade relations with India
However, he didn't mention the details of how these tariffs would be imposed or which industries would be hit.
The move is likely to affect India's agricultural and pharmaceutical exports to the United States.
Steel and aluminum producers are already suffering the effects of Trump's prior 25% tariffs.
A 25% duty on auto imports and parts will also be levied beginning April 3.
White House
India imposes their uniquely burdensome certification requirements: WH
After Trump's speech, the White House said India's testing and certification requirements for several sectors make it difficult for American companies to sell products.
"India imposes their own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it...costly for American companies to sell products in India," the White House said.
The White House estimates that removing these obstacles will increase US exports by at least $5.3 billion per year.
Tariff details
White House's clarification on tariff imposition
The White House later clarified that country-specific tariffs will be in addition to a "baseline tariff" of 10% on all goods imported into the US.
The baseline tariff would start at 12:01am local time (9:30am IST) on April 5.
The higher country-specific tariffs, including for India, will come into force from 12:01am local time (9:30am IST) on April 9.
Economic impact
Trump's vision for America's trade future
Describing himself as "kind," Trump said, "America will charge other countries only half of what they charge us."
He called it "fair" and a way to win back American jobs and industries.
He further stated that companies that build their products in the US will not need to pay any tariffs.
"There's no tariff if you build your product right here in America," Trump said.
Tariff list
Countries facing reciprocal tariffs
Of the countries facing reciprocal tariffs, Cambodia tops with 49%, followed by Vietnam (46%).
The European Union will be slapped with a 20% tariff, while Taiwan and Japan will be charged 32% and 24%, respectively.
The UK has been imposed a 10% tariff, Bangladesh (37%), Pakistan (29%), Sri Lanka (44%), and Israel (17%).