Amid ongoing negotiations for a trade agreement, US President Donald Trump has imposed a 26% retaliatory tariff on Indian exports. However, an Indian commerce ministry official, speaking to PTI on condition of anonymity, described the move as a “mixed bag” rather than a setback for India.
Trump’s Tariff Move and India’s Response
During an announcement at the White House Rose Garden on April 2, Trump defended his “reciprocal tariff” policy, arguing that India has been unfair in its trade practices. The universal 10% tariff on all US imports takes effect from April 5, with the additional 16% kicking in on April 10.
The Indian official noted that the government is analyzing the impact of these tariffs on trade and emphasized that the Trump administration has signaled a willingness to lower them if concerns over bilateral trade are addressed.
“It is a mixed bag and not a setback for India,” the official reiterated, suggesting that negotiations could still lead to a favorable outcome.
Trump’s Justification: ‘India Not Treating Us Right’
Trump, while referring to Indian Prime Minister Narendra Modi as a “great friend”, claimed that India has been imposing high tariffs on US goods.
“Their Prime Minister just left the US. He’s a great friend of mine, but I told him—‘You’re not treating us right.’ India charges us 52%, so we’ll charge them half—26%,” Trump said.
A chart displayed during Trump’s remarks alleged that India’s tariffs, combined with currency manipulation and trade barriers, unfairly disadvantage US businesses.
Future of Indo-US Trade Talks
Despite the tariff tensions, both countries are actively working towards a bilateral trade agreement, with the first phase expected to be finalized by September-October 2025. The White House has indicated that tariff rates may not increase further if India avoids retaliation and addresses US trade concerns.
With trade negotiations still in progress, India is weighing its options carefully, balancing its economic interests while maintaining a strategic partnership with the US.
U.S. President Donald Trump has imposed a 26% retaliatory tariff on Indian exports, citing trade imbalances. An Indian commerce ministry official described the impact as a “mixed bag, not a setback.”
Trump stated that India imposes 52% tariffs on U.S. goods and justified his move as “reciprocal.” He called PM Narendra Modi a “great friend” but insisted India “was not treating the U.S. fairly.”
Despite tensions, both nations continue negotiating a bilateral trade deal, aiming for a resolution by fall 2025.