Trade impact expected to be minimal as experts downplay 1% revision
New Delhi, April 4 — The United States has slightly reduced its proposed import duty on Indian goods from 27% to 26%, according to an updated White House document. The revised reciprocal tariff will come into effect on April 9, as part of Washington's broader strategy to curb its trade deficit and boost domestic manufacturing.The announcement was made during a White House briefing where US President Donald Trump unveiled a tariff chart highlighting revised import duties for various countries, including India, China, the UK, and the European Union. The chart claimed India imposes 52% in total trade barriers, citing factors such as currency manipulation and non-tariff barriers.
Although the initial White House documentation mentioned a 27% tariff, Thursday’s revision officially brings it down by 100 basis points to 26%. Government sources had also confirmed the earlier 27% figure on Thursday morning.
Industry experts noted that a 1% change is unlikely to significantly impact trade flows between the two nations.
India–US Trade Snapshot
From FY2021-22 to FY2023-24, the US remained India’s largest trading partner, accounting for:- 18% of total goods exports
- 6.22% of total imports
- 10.73% of total bilateral trade
- USD 35.32 billion in 2023-24
- USD 27.7 billion in 2022-23
- USD 32.85 billion in 2021-22
- USD 22.73 billion in 2020-21
- USD 17.26 billion in 2019-20
Key Exports and Imports in 2024
Top Indian Exports to the US:
- Drug formulations and biologicals: USD 8.1 billion
- Telecom instruments: USD 6.5 billion
- Precious and semi-precious stones: USD 5.3 billion
- Petroleum products: USD 4.1 billion
- Jewellery (gold & precious metals): USD 3.2 billion
- Ready-made garments (cotton): USD 2.8 billion
- Iron and steel products: USD 2.7 billion
Major US Imports to India:
- Crude oil: USD 4.5 billion
- Petroleum products: USD 3.6 billion
- Coal and coke: USD 3.4 billion
- Cut and polished diamonds: USD 2.6 billion
- Electric machinery: USD 1.4 billion
- Aircraft and parts: USD 1.3 billion
- Gold: USD 1.3 billion
Wider Global Impact
India is among nearly 60 countries subject to new US tariffs aimed at narrowing the trade gap. The White House has also revised tariffs for over a dozen countries, including Bosnia and Herzegovina, Botswana, Cameroon, Falkland Islands, Malawi, and Myanmar, each receiving a 100 basis point adjustment similar to India.While the revised 26% tariff is additional to existing US import duties on Indian goods, the move is being viewed as more symbolic than strategic, with experts calling for deeper engagement to resolve long-standing trade barriers on both sides.
