India is assessing the impact of the 26% reciprocal tariffs imposed by the US, but a senior government official said on Thursday that the move is a "mixed bag" and not a setback. The official, speaking to news agency PTI, said the commerce ministry is closely studying the situation and looking at possible responses.
The new tariffs announced by US President Donald Trump include a universal 10% duty on all imports into the US starting from April 5, with an additional 16% to be applied from April 10. These tariffs are part of a broader trade policy targeting multiple countries, including India.
The official said that while the tariff increase is being analysed, there is a possibility of the US reducing duties if India addresses certain trade concerns. Discussions between the two countries on a bilateral trade agreement are already underway, with both sides aiming to finalise the first phase of the deal by September-October this year.
"It is a mixed bag and not a setback for India," the official said, as quoted by news agency PTI, indicating that while the tariffs pose challenges, they also open the door for negotiations.
Trump justified the move by highlighting the high tariffs India imposes on American products. While announcing the new duties, he referred to the 26% reciprocal tariff as a "discounted" rate for India.
During his speech at the White House’s Rose Garden on Wednesday, Trump declared the tariff decision as a historic moment 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 said.
While explaining the decision, Trump held up a chart showing the tariff rates imposed by different countries on American goods, including those from India, China, the UK, and the European Union. The chart claimed that India charges 52% in tariffs, including trade barriers and currency policies, and that the US would now impose a 26% duty in response.
Trump also made specific comments about India’s trade policies and his discussions with the Indian prime minister.
"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%," Trump said.
Source: India Today