Trump to Announce Reciprocal Tariffs Ahead of Modi's White House Visit

U.S. President Donald Trump is set to announce new "reciprocal" tariffs before Indian Prime Minister Narendra Modi's upcoming visit to the White House this week, according to a U.S. official. This announcement comes as part of Trump's ongoing efforts to ensure that U.S. tariffs on imports align with those imposed by trading partners on American exports.

Details on the Announcement

White House press secretary Karoline Leavitt confirmed that the announcement will happen prior to Modi's visit, which includes a summit with Trump on Thursday. She stated, "I do believe it will come before the prime minister's visit tomorrow."

Trump's Perspective on Tariffs

Trump has consistently advocated for reciprocal tariffs, emphasizing the need for fairness. He has stated that if other countries impose tariffs on U.S. goods, the U.S. will reciprocate accordingly. During a press briefing, Leavitt referred to this approach as the "golden rule"—a concept many learn in school that promotes treating others as one wishes to be treated.

Global Context

The press secretary noted that many countries have taken advantage of the U.S. for too long, asserting that Trump's policies would benefit American workers and enhance national security.

Recent Developments

Earlier in the day, Kevin Hassett, the director of the White House National Economic Council, mentioned that discussions with various countries about these reciprocal tariffs were ongoing. "That's a work in progress. Everybody's talking about it right now, and actually the conversations with other countries began this morning, really early," Hassett explained.

Confusion Among Officials

However, Peter Navarro, senior counselor for trade and manufacturing, indicated that no reciprocal tariffs have been finalized as of yet, suggesting that the rollout may take longer than expected. He emphasized the importance of evaluating trading partners first to address any unfair practices.

Industry Implications

House Speaker Mike Johnson noted that Trump might consider exemptions for specific sectors like automobiles and pharmaceuticals as deliberations continue. Korean policymakers are closely monitoring these tariff announcements since they could impact Korean companies aiming to expand in the U.S. market.

Upcoming Tariff Changes

Trump has previously announced a 25-percent tariff on steel imports and has increased the tariff on aluminum from 10 percent to 25 percent, effective March 12. Additionally, the administration is contemplating tariffs on cars, semiconductors, and pharmaceuticals.

Potential Consequences

A White House source reported that the new tariffs would also apply cumulatively to Canadian and Mexican steel and aluminum imports, potentially leading to duties as high as 50 percent. Trump had temporarily paused these tariffs earlier in February following agreements on drug trafficking with those countries.

Tariffs, Trade, Economy