Donald Trump mounts tariff war; India exempt despite 'tariff king' label

NEW DELHI: US President Donald Trump signed an executive order on Saturday imposing broad tariffs on imports from Mexico, Canada, and China, triggering swift retaliation from North American neighbours.
Notably, India was exempt from the order despite Trump’s frequent characterization of the country as a "tariff king."
While India has been navigating trade negotiations with what a source described as a "confidently positive" approach, it contributes only 3.2 percent to America's overall trade deficit, ranking ninth among the highest contributors.
In contrast, China, Mexico, and Canada remain the top contributors, with China accounting for 30.2 per cent of the deficit, followed by Mexico at 19 per cent and Canada at 14 per cent, according to the Research and Information System (RIS).
Trump justified the tariffs by citing large trade imbalances and the role of certain nations in facilitating the entry of fentanyl into the US.
"We have big deficits with all three of them. In one case, they’re sending massive amounts of fentanyl, killing hundreds of thousands of people a year. And in the other two cases, they’re making it possible for this poison to get in. We have about a $200 billion deficit with Canada and a $250 billion trade deficit with Mexico," Trump said during a press briefing.
PM Narendra Modi, right, waves as US President Donald Trump reacts to the crowd during the 'Namaste Trump' event at Sardar Patel Stadium in Ahmedabad.
Despite past trade tensions, India has emphasized the strength of its economic ties with the US.
"India-US relations are very strong, multifaceted, and our economic ties are something very special. We have established mechanisms between the US and India to discuss any trade-related matters," MEA spokesperson Randhir Jaiswal said last week, reaffirming that New Delhi and Washington remain in close communication.
As part of its efforts to strengthen trade relations, India has recently introduced policy changes, including a reduction in customs duties on imported motorcycles.
The Union Budget 2025 lowered tariffs on bikes under 1600cc from 50 per cent to 40 per cent, with even larger reductions for motorcycles over 1600cc, benefiting American manufacturers like Harley-Davidson.
Additionally, India has taken steps to promote private investment in the nuclear sector, further signalling its commitment to expanding economic cooperation with the US.
While India's recent trade measures reflect an effort to ease tensions, it remains uncertain whether these initiatives will be perceived as substantial or insufficient in the broader context of US-India trade relations.