As trade negotiations between India and the US continue, New Delhi is carefully evaluating the economic implications of the 26% retaliatory tariffs announced by the Trump administration, a senior Commerce Ministry official revealed on Thursday, as per a report in
The new US tariff structure will roll out in two stages:
An initial 10% universal tariff on all imports effective April 5
An additional 16% duty (totaling 26% for India) from April 10
“The impact is being analyzed—it’s a mixed scenario, not a severe setback,” the official told PTI, emphasizing room for negotiation. The Trump administration has signaled potential tariff adjustments if trade concerns are addressed.
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Prior to the announcement, India established a 24/7 control room to monitor developments. Commerce Minister Piyush Goyal had visited Washington last month to discuss a bilateral trade pact and seek exemptions. Both nations aim to finalize the first phase of the agreement by September-October 2025.
In its February 1 Budget, India had already slashed peak customs duties from 150% to 70%, with average tariffs reduced to under 11% (from 13%). These steps were aimed at addressing US trade grievances.
President Trump unveiled the tariffs on April 2, declaring it “Liberation Day” for American industry. He criticized India’s trade policies, citing a 52% effective tariff on US goods (including non-tariff barriers), but imposed a “discounted” reciprocal rate of 26%.
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“India is very tough on trade… They charge us 52%. We’re giving them a discount,” Trump stated, while acknowledging PM Modi as a “great friend.”
With negotiations ongoing, India remains optimistic about mitigating the tariffs’ impact through diplomatic channels. The focus now shifts to accelerating the trade agreement to stabilize economic ties.
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