Trump order on reciprocal tariffs expected before meeting with PM Modi

President Trump likely to sign executive order on reciprocal tariffs before meeting with Prime Minister Modi, impacting US-India trade.

U.S. President Donald Trump is likely to sign an executive order on reciprocal tariffs before his bilateral meeting with Prime Minister Narendra Modi on Thursday (February 13, 2025), according to the White House. These are tariffs that will be applied on goods from countries that have import duties on U.S. goods.

“I do believe it will come before the Prime Minister’s visit tomorrow, and I will let the President discuss the details on the reciprocal tariff front, but this is something he believes strongly in,” the White House Press Secretary Karoline Leavitt said during Wednesday’s (February 12, 2025) press briefing. Ms. Leavitt said other nations had been “ ripping off America”.

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Mr. Trump has criticized India’s tariff rates in the past and India featured multiple times at a U.S. Senate confirmation hearing for Mr. Trump’s chief trade negotiator, Jamieson Greer, last week. In preparation for the bilateral dialogue, India has been considering lower tariffs on certain U.S. products, like American pecans, The Hindu had reported. The government also slashed import duties on several goods imported from the U.S., as part of the February 1 Union Budget.

Mr. Trump had increased tariffs on Chinese goods coming into the U.S. by 10%, and put on hold a 25% tariff on Mexican and Canadian goods until March 1. He also signed an order restoring 25% tariffs on steel and aluminium from March 12 onwards invoking Section 232 of the U.S.’s trade Expansion Act (1962) which relates to tariffs imposed for national security reasons. Mr. Trump had imposed these tariffs during his first term—including on India— but there had been exemptions and exclusions. The new order, signed on Monday (February 10, 2025), seeks to close exemptions and “ loopholes”. At least one Indian industry representative appeared to brush off Monday’s executive order, citing the low percentage of Indian steel exports that went to the U.S.

India had imposed retaliatory tariffs on U.S. agricultural and industrial products when Mr. Trump applied 232 tariffs on Indian steel and aluminium in 2018. In 2023, the government entered an agreement with the Biden administration to rescind these retaliatory tariffs. In return, the U.S. agreed to exclusion rates (from Section 232 tariffs) of 70% for steel and 80% for aluminium products from India. It remains to be seen how exemptions and exclusions for Indian steel and aluminium will be impacted by Monday’s order and Thursday’s bilateral between Mr. Trump and Mr. Modi.