Washington, April 3— The United States has imposed a 27% reciprocal tariff on Indian goods, citing high import duties by New Delhi on American products. The move, announced by President Donald Trump, aims to reduce the US trade deficit and strengthen domestic manufacturing.
“This is Liberation Day, a long-awaited moment,” Trump declared from the White House Rose Garden. “April 2, 2025, will forever be remembered as the day American industry was reborn.” He held up a chart detailing tariffs imposed by countries like India, China, the UK, and the European Union, alongside the new reciprocal duties they will now face.
According to White House documents, India previously charged 52% in tariffs, factoring in currency manipulation and trade barriers. Trump said, “India, very, very tough. The prime minister just left. He’s a great friend of mine, but I told him, ‘You’re not treating us right.’”
India Reviewing Impact
Indian officials described the tariffs as a “mixed bag” rather than a setback, with the commerce ministry analyzing their effects. A government official noted that a universal 10% US tariff on all imports takes effect April 5, while the specific 27% duty on Indian goods will be enforced from April 10.
“There is a provision that if a country addresses US concerns, the Trump administration can consider lowering the tariffs,” the official said. India and the US are already negotiating a bilateral trade deal, aiming to finalize the first phase by fall 2025.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), acknowledged the impact on domestic exporters but noted India is better positioned than competitors like Vietnam and China. “We will definitely be affected, but we are in a lower tariff band than many others,” he said.
US-India Trade Relations
The US has been India’s largest trading partner since 2021-22, accounting for 18% of India’s total exports and 10.73% of bilateral trade. India had a $35.32 billion trade surplus with the US in 2023-24.
Major Indian exports to the US include pharmaceuticals ($8.1 billion), telecom equipment ($6.5 billion), and petroleum products ($4.1 billion), while key imports from the US include crude oil ($4.5 billion), petroleum products ($3.6 billion), and coal ($3.4 billion).
Despite the new tariffs, experts suggest a trade deal could offer relief, with negotiations ongoing between the two nations.
