India is assessing the implications of the reciprocal tariffs imposed by the United States, yet a senior government official on Thursday described the measure as a “mixed bag” rather than a setback.
The official indicated that the Commerce Ministry is scrutinising the new duties and exploring potential responses.
US President Donald Trump’s tariff announcement includes a universal 10 per cent duty on all imports into the country, effective from 5 April, with an additional 16 per cent to be applied from 10 April.
India is among several nations affected by the tariffs, which are part of a broader protectionist policy.
The official suggested that while the increased duties present economic challenges, they may also provide India with an opportunity to negotiate better trade terms with the United States.
Discussions regarding a bilateral trade agreement between the two nations are already in progress, with both sides aiming to conclude the initial phase of talks by September or October.
“It is a mixed bag and not a setback for India,” the official remarked, as quoted by PTI, adding that while concerns persist, diplomatic engagements might yield benefits.
Defending his decision, Trump reiterated his long-standing grievances over what he perceives as an unfair trade balance with India.
While announcing the new duties, he referred to the 26 per cent reciprocal tariff as a “discounted” rate for India, arguing that the move was necessary to counter India’s high tariffs on American goods.
At a White House ceremony in the Rose Garden on Wednesday, Trump characterised the tariff decision as a landmark event for American industry.
“This is Liberation Day, a long-awaited moment. 2nd April 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again,” he declared.
Holding up a chart detailing tariffs imposed by various nations on American goods, Trump underscored India’s position, stating that it levies 52 per cent in tariffs, including trade barriers and currency policies. In response, the US would now impose a 26 per cent duty on Indian imports.
Trump also referenced his discussions with the Indian Prime Minister, emphasising the need for a fairer trade relationship.
“India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine, but I said, you're a friend of mine, but you're not treating us right. They charge us 52%,” he remarked.
India has yet to officially respond to Trump’s comments or the specifics of the tariff policy.
However, economic experts suggest that New Delhi may seek exemptions or explore alternative trade measures to mitigate the impact of the new levies.
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