The Indian government has set up a high-level committee to review tariff relief on imports from the United States as the US prepares to impose reciprocal tariffs across trading nations by April 2.
The panel, formed under the Union Commerce Ministry, has been tasked with assessing the potential impact of these tariffs and is expected to submit its report by March 15. The report will be shared with both the Ministry of Commerce and the Ministry of Finance before any final decision is made.
The government’s review will focus on import duties currently ranging between 15–20 per cent, 50–70 per cent, and 70–80 per cent. The panel is assessing whether adjustments can be made under specific product codes used for customs classification.
By studying these tariff categories, the committee aims to determine the best possible course of action to ensure India remains competitive while balancing trade relations with the United States.
The committee’s primary responsibility is to examine the list of imported goods and propose tariff reductions where necessary. Once the recommendations are finalised, the Prime Minister’s Office will review them before any policy adjustments are implemented.
India has already shown a willingness to address global concerns about its tariff structure, responding to international criticism that it maintains high import duties on foreign goods.
The outcome of the committee’s review will be crucial in shaping India's response to the proposed US tariffs. The findings could help India negotiate better trade terms while also ensuring domestic industries are protected from any adverse impact.
In the Union Budget 2025-26, India had already taken steps to reduce import duties on select items. The customs duty on bourbon whisky was reduced from 150 per cent to 100 per cent.
Similar reductions were made on various imports, including fish hydrolysate, scrap materials, satellite equipment, ethernet switches, and high-end motorcycles. These changes were aimed at improving trade relations while also supporting domestic industries.
Despite the upcoming changes in US tariffs, certain sectors in India are expected to remain unaffected in the short term. The semiconductor industry, for instance, is unlikely to face significant disruptions as India is not a major exporter of chips to the US.
Similarly, the domestic automobile industry, which primarily serves the fast-growing Indian market, is not expected to suffer major consequences from the US tariff adjustments.
In the steel sector, India is also expected to remain largely insulated from the impact of US tariffs. A recent report from Crisil Intelligence revealed that only 2 per cent of India’s total finished steel exports in the first nine months of the current fiscal year were directed to the US.
This limited exposure suggests that India’s steel industry will not experience any major repercussions from the new trade measures being introduced by Washington.
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