India Examining Trump’s 27% Tariff Impact as Talk With US Trade Underway
India is meticulously analyzing the implications of US President Donald Trump’s announcement of a 27% reciprocal tariff on its exports, with the government emphasizing ongoing talks for a “mutually beneficial” trade pact with Washington. The Ministry of Commerce and Industry on Thursday assured that it is engaging stakeholders to navigate the tariff challenge while exploring opportunities amid the shifting US trade landscape.
The US executive order, signed by Trump, imposes a baseline 10% duty on all imports starting April 5, followed by an additional 17% on India-specific goods from April 9, totaling 27%. This move targets about 60 countries, aiming to counter high duties on American products and reduce the US trade deficit.
The decision follows Trump’s repeated claims that India imposes steep tariffs—up to 52%—on US goods, prompting this reciprocal action to boost American manufacturing.
The commerce ministry stated, “The Department of Commerce is carefully examining the implications of the various measures announced by the President of the USA.” It is consulting Indian industry and exporters to assess the tariffs’ impact and strategize responses.
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A senior official, quoted by PTI, described the tariffs as “a mixed bag and not a setback,” suggesting that while challenges exist, India could leverage trade negotiations to mitigate effects.
India and the US are actively negotiating a multi-sectoral Bilateral Trade Agreement (BTA), with discussions covering market access, tariff reductions, and supply chain integration. “Talks are focused on enabling both nations to grow trade, investments, and technology transfers,” the ministry noted.
The government remains in close contact with the Trump administration, aiming for an “expeditious conclusion” to the trade pact to address mutual interests.
The ministry’s statement highlighted potential opportunities arising from the US policy shift. “The Department is also studying opportunities that may arise due to this new development in US trade policy,” it said, signaling a proactive stance.
The PTI-quoted official added that India’s position is stronger than some competitors facing higher levies, offering a relative advantage in the global market.
The US, India’s largest trading partner, imposed the 27% tariff to address what Trump calls unfair trade practices. India’s exports—spanning IT, pharmaceuticals, and automobiles—could face higher costs, though experts suggest the impact may be less severe compared to nations hit with steeper duties.
The commerce ministry is aligning its response with the “Viksit Bharat” vision, ensuring economic growth remains a priority amid these trade developments.
