US President-elect Donald Trump has issued a warning to India, stating that if the country imposes taxes on American goods, the US will retaliate with tariffs of its own. This threat comes amidst ongoing trade tensions between the two nations.
Trump said, “If they tax us, we tax the same amount.” Donald Trump vows reciprocal tariffs in India, citing high import duties. If India charges the US 100%, the US will respond in kind, ensuring fair trade practices, Trump said.
Trump’s warning is seen as a response to India’s efforts to promote local currencies for cross-country trade, which could potentially challenge the US dollar’s dominance. India has been exploring ways to reduce its reliance on the US dollar, including permitting the opening of VOSTRO accounts and forming agreements with other countries for local-currency trade.
The US President-elect has threatened to impose 100% tariffs on BRICS nations, including India, if they introduce or support a currency that could challenge the US dollar. Trump has demanded a commitment from these countries that they will neither create a new BRICS currency nor support any alternative currency to replace the US dollar.
India’s External Affairs Minister, S. Jaishankar, has responded to Trump’s threat, stating that India will take a “practical and pragmatic” approach to trade and economic issues. Jaishankar emphasized the importance of maintaining good relations with all countries, including the US.
The trade tensions between the US and India are likely to continue, with both countries seeking to protect their economic interests. The outcome of this situation remains uncertain, with potential implications for global trade and economic stability.
