Commerce Ministry Evaluates Fallout as Tariffs Roll Out in Two Phases Starting April 5
New Delhi, April 3 — The Indian government is currently evaluating the implications of the United States’ decision to impose a 26% reciprocal tariff on Indian imports, a senior official from the commerce ministry confirmed on Thursday.The tariff, which comes as part of a broader strategy by the US to counter high import duties levied on American goods globally, will be implemented in two phases. A universal 10% tariff on all imports to the US will begin on April 5, followed by an additional 16% on April 10.
"The ministry is analysing the impact of the announced tariffs," the official stated. They added that the US administration has indicated a willingness to reconsider the duties if a country addresses its trade-related concerns.
Ongoing Trade Talks Offer a Path Forward
India and the US are already engaged in negotiations for a bilateral trade agreement. According to the official, the two sides are targeting the first phase of the trade pact to be finalized by September-October 2025."It is a mixed bag and not a setback for India," the official noted, emphasizing that the situation presents both challenges and opportunities.
Trump Declares "Liberation Day" for US Industry
US President Donald Trump made the official tariff announcement on April 2 from the White House Rose Garden, calling it a historic day for American manufacturing and economic independence.“This is Liberation Day, a long-awaited moment. April 2, 2025, will forever be remembered as the day American industry was reborn,” Trump declared.
During his remarks, he held up a chart showing tariff rates imposed by several countries on American goods. The chart highlighted India as charging 52% tariffs, factoring in trade barriers and alleged currency manipulation. In response, the US has now imposed what Trump called a "discounted" reciprocal tariff of 26% on Indian imports.
Trump Criticizes Indian Tariffs Despite Personal Ties
While acknowledging his relationship with India’s prime minister, Trump did not shy away from criticizing India's trade policies.“India, very, very tough. The prime minister just left. He's a great friend of mine, but you're not treating us right,” he said. “They charge us 52%... that’s not fair.”
As India assesses the fallout and continues trade discussions, the move marks a significant moment in evolving US-India trade relations.
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