New Delhi, April 3: India is evaluating the effect of the 27% reciprocal tariffs imposed by the United States but considers the move a “mixed bag” rather than a setback, a senior government official said on Thursday. The commerce ministry is closely studying the situation and considering potential responses, the official told news agency PTI.
US President Donald Trump announced a universal 10% duty on all imports into the US from April 5, with an additional 16% to be applied from April 10. These tariffs are part of a broader trade policy affecting multiple nations, including India.
The official suggested that while the tariff increase presents challenges, there remains a possibility that the US could reduce duties if India addresses certain trade concerns. Bilateral discussions on a trade deal between India and the US are ongoing, with both sides aiming to finalize the first phase by September-October this year.
Government sources told BusinessToday TV that they are analyzing the indirect macro impact of the tariffs, which could be more significant than the direct consequences. A detailed statement on the matter may be issued soon.
Meanwhile, the Prime Minister’s Office (PMO) has called a high-level meeting to evaluate the US tariff order. The meeting is chaired by the Principal Secretary to the PM, with senior officials from the Commerce Ministry, NITI Aayog, DPIIT, and other relevant departments providing briefings.
Trump justified the tariffs by citing high duties imposed by India on American goods. While announcing the tariffs, he described the 27% reciprocal duty as a “discounted” rate for India.
During a speech at the White House’s Rose Garden on April 2, Trump called the tariff decision 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.
Trump displayed a chart illustrating the tariff rates imposed by various countries on US goods, including India, China, the UK, and the European Union. The chart claimed India charges a 52% tariff, including trade barriers and currency policies, prompting the US to impose the 27% duty in response.
Speaking about India’s trade policies, Trump said, “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%.”
