Ahead of the meeting with Prime Minister Narendra Modi, President Donald Trump on Thursday posted a cryptic message on his social media site Truth Social.
"THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN," Trump said.
During Modi's meeting with Trump, discussions regarding a hike in tariffs are likely to take place. The dramatic hike in tariffs could send shockwaves through the world economy, possibly depressing growth and also causing inflation.
Also read | Modi-Trump bonhomie will be tested amid tariff threats: 'He is prepared for this'
With Trump’s cryptic post, speculations are rife about whether the US will impose new tariffs on India as well.
By implementing the reciprocal tariffs, it would match US import duties with the tax rates imposed by other countries. Trump has said that these tariffs would help to create domestic factory jobs.
The Trump administration has criticised India for imposing high tariffs that restrict US imports.
Trump had indicated that a detailed order on the policy would be issued soon emphasising that "every country will be reciprocal".
Also, Trump has levied an additional tariff on China, Canada and Mexico. An additional 10 per cent tariff was imposed on Chinese imports due to its production of the opioid fentanyl.
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On Monday he removed the exemptions from his 2018 steel and aluminum tariffs.
PM Narendra Modi's US visit
PM Modi arrived in Washington DC on Thursday after co-chairing the Artificial Intelligence Action Summit in France.
Since assuming charge as president of the United States in January, Modi is the fourth foreign leader to meet Trump. PM Modi met US's Director of National Intelligence Tulsi Gabbard and held discussions on addressing security threats, strengthening cooperation in counter-terrorism and so on.
The Modi-Trump meeting is expected to cover a wide range of issues including, defence, and trade.
Modi is also set to meet Tesla CEO Elon Musk on Thursday.