US President Donald Trump announced a significant new policy of "reciprocal tariffs" aimed at both allies and adversaries, emphasizing that US allies often impose harsher trade conditions than their adversaries. This announcement was made shortly before his meeting with Indian Prime Minister Narendra Modi in Washington, D.C.
During the press briefing, Trump stated that these tariffs would be tailored to each trading partner and would take into account various factors, including value-added taxes (VAT). He described the initiative as a necessary measure to level the playing field in international trade, asserting that the current situation has led to unfair practices against the United States.
Prime Minister Modi's visit included discussions with key US officials, including National Security Advisor Michael Waltz and tech entrepreneur Elon Musk. Modi characterized his meeting with Waltz as "fruitful," highlighting the importance of defense, technology, and security in India-US relations.
This marks Modi's fourth meeting with a global leader at the White House since Trump's inauguration, following meetings with leaders from Israel, Japan, and Jordan. The specifics regarding when the new tariffs will take effect remain unclear, but analysts have warned that they could lead to increased tariffs on emerging markets like India and Thailand, potentially raising consumer prices in the US.