Tracey Beatrice By Tracey Beatrice Ashworth
International Economics, Trade, and Political Affairs Correspondent, New Zealand Bharat News (NZB News)
WASHINGTON – U.S. President Donald Trump took aim at India today, railing against its “tremendous tariffs” in a fiery address to Congress, vowing reciprocal levies starting April 2 to level the trade playing field. Hours later, India hit back, rejecting the “tariff king” label with a salvo of facts that flip the script—pointing to America’s own trade barriers. For New Zealanders and Bharat readers tracking global markets, this spat signals choppy waters ahead for trans-Pacific trade.
Trump’s Tariff Tirade
Speaking to a joint session of Congress this morning, Trump singled out India as a prime offender in his push for “fairness and reciprocity.” “India charges us tariffs higher than 100%—tremendous tariffs,” he declared, citing Harley-Davidson motorcycles as a poster child. “They send us a bike, we charge nothing. We send them one, it’s 100%. April 2, reciprocal tariffs kick in—whatever they charge us, we charge them.” The salvo, reported by The Times of India at 4:06 PM NZDT, builds on Trump’s March 4 Mar-a-Lago pledge to tax India “the same amount” it levies on U.S. goods, with Commerce Secretary Howard Lutnick echoing, “How you treat us is how we’ll treat you.”
Trump’s beef isn’t new. Since 2019, he’s branded India a “tariff abuser,” spotlighting duties like the 50% on high-end motorcycles (down from 100% pre-2023 concessions) and 100% on autos. Today’s speech tied it to his “America First” reboot, with reciprocal tariffs—set to launch in 28 days—targeting nations with deficits, including India’s $50 billion goods-and-services surplus in 2023 (India’s External Affairs Ministry). For NZ, reliant on $6.2 billion in EU exports (Stats NZ, 2024), Trump’s tariff war could ripple through global supply chains.
India’s Counterpunch
India didn’t flinch. By 2:00 PM NZDT, Commerce Minister Piyush Goyal, fresh from U.S. talks on March 3, fired back via a presser in New Delhi. “Trump’s claims distort reality,” Goyal said, per Reuters. “India’s average tariff is 18.1%—high, yes, but within WTO limits. The U.S. hides its own barriers behind a 2.5% average.” India’s rebuttal, backed by the Global Trade Research Initiative (GTRI), flips the mirror: America’s non-tariff walls—subsidies, quotas, and Buy American rules—block Indian exporters more than tariffs alone.
The data stacks up. India’s 2022 tariff average rose to 18.1% from 13% in 2014 under Modi’s “Make in India” push, per World Bank stats—steep versus the U.S. (2.5%), Japan (2.5%), or EU (4.2%). But Goyal highlighted U.S. cotton subsidies ($4 billion yearly) and dairy quotas choking India’s $120 billion U.S. exports (FY24). “Harley-Davidson failed here not because of tariffs—they’re now 30%—but because Indians prefer fuel-efficient bikes,” he quipped, noting the firm’s 2020 India exit. Posts on X amplify India’s stance: “Trump ignores his own steel tariffs—25% since 2018,” one user jabbed.
Historical Echoes
This isn’t the first U.S.-India tariff tango. Trump’s 2018 steel and aluminum levies (25% and 10%) hit $1.1 billion of India’s exports, sparking retaliatory duties on U.S. almonds and apples—dropped in 2023 to thaw ties. The 2019 GSP axe, stripping $5.6 billion in duty-free Indian goods, fuelled the feud. India’s protectionism traces to the 1970s, when tariffs topped 80% (Grieco, 1980s), before liberalising to 13% by 2008. Modi’s reversal reflects China-style manufacturing goals—irking Trump, who sees India’s $77.5 billion FY24 U.S. exports as a deficit driver.
America’s tariff tale isn’t spotless either. Post-WWII, it championed free trade, but Trump’s first term unleashed $7 billion in India-targeted duties (PIIE, 2019). Today’s reciprocal plan, factoring in subsidies per White House aides, could see U.S. rates soar past India’s on key goods—a tit-for-tat twist.
Latest Updates: Stakes Rise
Trump’s March 5 Congress speech, per The Indian Express, ties tariffs to broader deals—F-35 sales and oil exports to India—hinting at leverage. Goyal, in Washington until March 8, seeks clarity on impacts, with Citi Research pegging India’s annual export losses at $7 billion if tariffs bite autos and pharma. India’s offered cuts—30% on bikes, 20% on tech imports—aim to dodge the storm, but agriculture’s off-limits, guarding 70 million farmers.
For NZ, it’s a sideshow with stakes. A weaker U.S.-India trade link could pivot India toward China ($100 billion trade, deficit-heavy), reshaping Pacific flows. Kiwi exporters, already jittery over Europe’s 1.2% 2025 growth (IMF), face a wild card if Trump’s tariffs cascade.
Excerpt
“Trump’s tariff drumbeat met India’s fact-laden riposte—18.1% versus subsidies and quotas. History’s trade wars haunt this clash, but April 2 looms as the real test. For NZ and Bharat, it’s a front-row seat to a global economic showdown.”
Tracey Beatrice Ashworth unpacks international economics, trade, and political affairs for NZB News, with a keen eye for global shifts.
