'They ripped us off': Trump vows to impose reciprocal tariffs on April 2 amid trade tensions

Donald Trump revealed a dramatic policy change regarding trade policy, which states that he is prepared to retaliate on tariffs to every country, and not to merely a narrow selection of 10 to 15 nations that post the highest trade deficits. It is a massive escalation of the Trump trade war strategy. Trump sees tariffs as a tool of protecting the home economy from unfair foreign competition and as a negotiating lever for better terms for the US. Trade war concerns are, however, frightening the markets and inciting recession fears in the US.

A 'Liberation Day' for the US Economy?

Trump has branded April 2 as "Liberation Day," and he promised to make further tariff announcements on automobiles, cars, chips, and others. He is convinced that the action will bring back some of the money that has been drained from the US.

Boom Town USA- President Donald Trump answered questions from reporters Sunday while aboard Air Force One. He discussed tariffs and was asked to clarify previous remarks on the idea of a third term in office. pic.twitter.com/QTG4ejdLOH

— Karli Bonne’ 🇺🇸 (@KarluskaP) March 31, 2025

India's Concerns: Potential Impact on Exporter

Indian exporters and industries are appealing to the government to protect them from the US's retaliatory tariffs, seeking exemptions since such tariffs would seriously affect them. The US is India's biggest trading partner, and any tariff imposed would have serious implications.

VIDEO | Washington DC: US President Donald Trump (@realDonaldTrump) says, "Today, we are delighted to announce that Hyundai is making a major $5.8 billion investment in American manufacturing. In particular, Hyundai will be building a steel plant in Louisiana, which will produce… pic.twitter.com/NM1MsXKQ8S

— Press Trust of India (@PTI_News) March 24, 2025

VIDEO | Washington DC: US President Donald Trump (@realDonaldTrump) says, "We have been very nice to a lot of countries for a long time. But I call April 2 a Liberation Day... We will be announcing some additional tariffs over the next few days related to automobiles, cars,… pic.twitter.com/UsojFEVd0z

— Press Trust of India (@PTI_News) March 24, 2025

A complex web of trade relations

The US has already introduced tariffs on aluminum, steel, and autos, and additional tariffs on all products imported from China. Trump threatened to impose a package of tit-for-tat tariffs on countries imposing levies on US exports, promising to retaliate in the same measure against these nations.