India's "enormously high" tariffs block imports, Kevin Hassett, Trump's top economic adviser, told CNBC ahead of Prime Minister Narendra Modi's Washington visit. Trump, advocating reciprocal tariffs, previously criticised India as a "big abuser" on trade. India is reportedly planning tariff cuts in sectors like electronics and medical equipment to boost US exports. Meanwhile, Trump plans new 25% tariffs on steel and aluminum imports and reciprocal tariffs this week.

US stocks climbed on Monday as traders seemed to brush off President Donald Trump’s latest tariff threat while anticipating key economic reports later this week. The Dow Jones Industrial Average rose 287 points (0.7%), the S&P 500 gained 0.6%, and the Nasdaq Composite advanced 0.7%.

Trump announced on Sunday that he will impose a 25% tariff on all foreign steel and aluminum imports starting Monday, including from allies like Canada and Mexico. He also plans to introduce reciprocal tariffs later this week to match what other countries charge on US exports. This move, part of his broader trade agenda, follows previous tariff increases on Chinese goods and threats targeting Europe, Taiwan, and industries like pharmaceuticals and semiconductors.

The European Union has called the tariffs "unlawful" and threatened retaliatory measures against the United States.

The tariffs, which could escalate trade tensions and invite retaliation, will affect major steel and aluminum suppliers like Canada, Brazil, Mexico, and South Korea. Trump’s earlier steel and aluminum tariffs during his first term strained relations with allies, though some restrictions were later eased under the Biden administration. It remains unclear if the new tariffs will add to existing ones. The president plans to announce the reciprocal tariffs midweek, stating, “If they charge us, we charge them.”