"If they tax us, we tax them...," Trump Signals Tough Trade Stance; Reciprocal Tariffs on India

US President-elect Donald Trump has reiterated his commitment to reshaping trade relationships, targeting countries like India, Brazil, and North American neighbours, Canada and Mexico, with tougher tariff policies. Speaking at his Mar-a-Lago resort on Monday, Trump specifically criticized India’s steep import tariffs on American goods, vowing a tit-for-tat approach to ensure "fairness in trade."

“If they tax us, we tax them the same amount,” Trump said, referencing India’s 100% tariffs on certain US products. “They charge us 100 and 200. India charges a lot, Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing,” he added, stressing his focus on reciprocity in trade deals.

This rhetoric underscores Trump’s broader push for economic fairness, a cornerstone of his administration’s agenda. The President-elect’s tough stance comes as US-India trade ties continue to face friction over tariff structures, particularly on high-value goods like motorcycles, medical devices, and agricultural products.

Tougher Measures on Canada and Mexico
Trump’s trade focus wasn’t limited to India. Addressing ongoing issues with Canada and Mexico, Trump warned of imposing a 25% tariff on imports from both countries unless they take decisive action to combat the influx of drugs and migrants into the US.

Canada, in particular, has already taken steps to address Trump’s concerns, announcing a CAD 1.3 billion investment in border security. This includes granting its border services enhanced powers to inspect goods destined for the US and increasing surveillance to curb illegal crossings.

The move follows a surge in migrant detentions along the US-Canada border, with over 23,000 people detained in the past year, compared to 10,000 the year prior. However, Canadian officials admit challenges in preventing southbound crossings, even as they deploy additional resources to strengthen enforcement.

The Business Implications
Trump’s focus on reciprocal tariffs and border security could have far-reaching consequences for businesses across sectors. For India, retaliatory tariffs from the US could impact key export categories, including textiles, pharmaceuticals, and auto components.

Meanwhile, stricter trade measures on Canada and Mexico could strain the USMCA, affecting industries heavily reliant on cross-border supply chains, such as automotive, agriculture, and technology.

As the President-elect prepares to take office, businesses across the globe are watching closely, anticipating shifts that could redefine trade norms and impact international market dynamics. For India and its counterparts, the message is clear: the era of "America First" trade policies is here.