'It’s a mixed bag, not a setback for India': India examining US’s reciprocal tariffs
PTC Web Desk: India is closely analysing the impact of the reciprocal tariffs imposed by the United States, but the move is not seen as a major setback, according to a senior government official. The official, as reported by a news agency, described the situation as a “mixed bag,” indicating both challenges and opportunities for negotiations.
The tariffs, part of a broader trade policy introduced by US President Donald Trump, include a universal 10% duty on all imports starting April 5, followed by an additional 16% from April 10. These measures are aimed at several countries, including India.
The Indian commerce ministry is evaluating the implications of these tariffs and exploring possible responses. The official suggested that the US might reconsider its duty structure if India takes steps to address certain trade-related concerns. Talks on a bilateral trade agreement are already in progress, with both sides targeting an initial phase of the deal by September or October this year.
“It’s a mixed bag, not a setback for India,” the official stated, suggesting that while the higher tariffs pose challenges, they also offer an avenue for further discussions between the two nations.
President Donald Trump defended the decision by pointing to India’s high tariffs on American products. While announcing the new duties at the White House Rose Garden on Wednesday, he described the moment as historic for the US economy.
“This is Liberation Day—a long-awaited moment. April 2, 2025, will always be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day we began making America wealthy again,” Trump declared.
Displaying a chart comparing tariff rates imposed by different countries on American goods, Trump claimed that India’s trade policies result in an effective 52% tariff, factoring in trade barriers and currency policies. He stated that the US’s reciprocal tariff on Indian goods is actually a "discounted" rate.
Trump also referenced discussions with the Indian PM, emphasising that while he considers him a "great friend," he believes India’s trade practices have been unfair to the US.
"India, very, very tough. The prime minister just left. He’s a great friend of mine, but I told him—you're a friend, but you're not treating us right. They charge us 52%,” Trump remarked.
- With inputs from agencies
