India Spared From Trump’s Tariff Hammer—for Now
U.S. trade officials under President Trump have indicated that India will not be subjected to the same aggressive tariff policies currently targeting China, Mexico, and Canada. As of March 27, 2025, Trump has imposed 25% tariffs on imports from Canada and Mexico (with a 10% rate on Canadian energy) and an additional 10% on Chinese goods, enacted via executive orders in early February to pressure these nations on illegal immigration and the fentanyl crisis. India, however, appears to be sidestepping this initial salvo. This could be due to its smaller share of the U.S. trade deficit 3.2% compared to China’s 30.2%, Mexico’s 19%, and Canada’s 14%—and its limited involvement in the border security and drug trafficking issues driving Trump’s current agenda. While Trump has previously labeled India a “tariff king” for its high duties on U.S. products like Harley-Davidson motorcycles, his administration seems to be prioritizing larger trade partners for now. Posts on X and recent reports suggest this leniency might also reflect ongoing bilateral trade discussions or India’s strategic value as an alternative supplier amid U.S.-China tensions. Still, the threat of “reciprocal tariffs” looms, with potential shifts hinging on future negotiations, possibly during Prime Minister Narendra Modi’s anticipated U.S. visit later in 2025.
