Trump plans reciprocal tariffs before Modi meeting.
The White House announced that it expects former President Donald Trump to sign an executive order on reciprocal tariffs ahead of his scheduled bilateral meeting with Indian Prime Minister Narendra Modi on Thursday, February 13, 2025. The executive order aims to address trade imbalances by imposing tariffs on countries that impose higher tariffs on U.S. goods. Trump has long advocated for fair and balanced trade practices, emphasizing the need to protect American industries. The meeting with Prime Minister Modi is expected to cover key economic and strategic issues, including trade and defense cooperation.
The announcement has reignited concerns among international trade partners, as Trump’s plan would apply tariffs equivalent to those levied on American goods by foreign governments. The policy, Trump argues, is essential to leveling the playing field and protecting U.S. businesses from what he describes as unfair trade practices.
“We are going to ensure that American businesses and workers are treated fairly,” Trump stated during a press conference at the White House. “For too long, we’ve allowed other countries to impose high tariffs on our goods while we do little or nothing in response. That ends now with this reciprocal tariff order.”
The executive order is expected to target countries that impose significantly higher tariffs on U.S. exports than the United States imposes on their imports. While the full list of affected nations has not been disclosed, analysts predict that China, India, and the European Union might face new tariffs.
The move comes ahead of a scheduled bilateral meeting with Indian Prime Minister Narendra Modi on Thursday, February 13, 2025. Trade issues are expected to be high on the agenda for the meeting, as India has been among the countries with which the U.S. has had tariff disputes in recent years.
“But when it comes to trade, India needs to understand that we seek fairness.”
The concept of reciprocal tariffs aligns with Trump’s broader trade policy, which has focused on reducing the U.S. trade deficit and bringing manufacturing jobs back to the country. His administration has previously imposed tariffs on steel and aluminum imports, citing national security concerns.
However, Trump’s tariff policies have been contentious both domestically and internationally. U.S. businesses that rely on imported goods have warned that increased tariffs could raise costs for consumers and disrupt supply chains.
“Retaliatory tariffs from trading partners could hurt American exporters and farmers,” said Jennifer Hillman, a senior fellow at the Council on Foreign Relations. “The global economy is already fragile, and this move could lead to tit-for-tat measures that harm everyone.”
Economists have noted that reciprocal tariffs could complicate relations with key allies. The European Union has already signaled its intent to respond if the U.S. imposes new tariffs on European goods.
“We will not hesitate to act if American tariffs unfairly target European products,” said Valdis Dombrovskis, the EU’s trade commissioner.
China, which has been engaged in a prolonged trade war with the United States, is also expected to monitor the situation closely. Beijing has previously accused Washington of economic coercion and has vowed to protect its interests.
“China opposes unilateral tariff actions,” said Foreign Ministry spokesperson Zhao Lijian. “We urge the U.S. to act rationally and work toward mutually beneficial trade relations.”
Domestically, reactions to Trump’s announcement have been mixed. Supporters argue that reciprocal tariffs are long overdue and necessary to protect American jobs.
“This is a bold and necessary step to stand up for American businesses,” said Senator Josh Hawley. “Our workers deserve a level playing field.”
Critics, however, caution that the move could backfire by inviting retaliation from trading partners and increasing costs for American consumers.
“This policy risks igniting a global trade war,” said Senator Sherrod Brown. “We should be negotiating reductions in tariffs, not escalating tensions.”
The agricultural sector is particularly apprehensive, as farmers have been heavily impacted by previous tariff disputes, especially with China.
“We rely on export markets for a significant portion of our crops,” said Iowa soybean farmer Mark Stevens. “If other countries impose counter-tariffs, we could lose critical markets and suffer major financial losses.”
The timing of Trump’s announcement is seen as strategic, coming just before his meeting with Prime Minister Modi. Trade has been a contentious issue between the two countries, with the U.S. objecting to India’s tariffs on American goods such as almonds, apples, and motorcycles.
India, for its part, has defended its trade policies as necessary to protect domestic industries. Prime Minister Modi has emphasized the importance of self-reliance and has implemented policies aimed at boosting local manufacturing.
“We look forward to constructive discussions with the United States to address mutual concerns.”
As the world watches, the potential for escalating trade tensions looms large. Global markets have already shown signs of volatility in response to the announcement. The Dow Jones Industrial Average fell 300 points following news of the impending executive order.
The outcome of the Trump-Modi meeting will likely provide further clarity on the administration’s trade strategy and its potential impact on international relations. Observers note that the success or failure of the reciprocal tariffs policy could have significant implications for the global economy in the years to come.
“Trade wars have no winners,” said former U.S. Treasury Secretary Lawrence Summers.
Whether Trump’s executive order will achieve its stated goal of fairness and reciprocity remains to be seen. For now, the world waits to see how America’s trading partners will respond and whether diplomacy can prevail over protectionism.