As India mulls over the 26% reciprocal tariffs announced by the US President Donald Trump, a senior government official reportedly described the reciprocal tariffs on Thursday (3rd April) as a “mixed bag and not a setback”. Speaking to PTI, the senior official said that the Commerce Ministry is closely analysing the situation and contemplating a possible response.
As per reports, President Trump, who warned all the countries about imposing reciprocal tariffs after he assumed office in January this year, announced a universal 10% duty on all Indian imports into the US effective from 5th April. In addition to that, a 16% duty will be effective from 10th April. Admitting that the reciprocal tariffs pose a challenge for India, the senior government official expressed hope that there is scope for negotiations. The official added that the US might revise the tariffs if India addresses certain trade concerns. The two countries are reportedly discussing a bilateral trade agreement, the initial phase of which is expected to be finalised by September-October this year.
While announcing the 26% tariffs on India on 2nd April, Trump pointed out how this was a “discounted” rate compared to the 52% duty that India imposes on American products. “This is Liberation Day, a long-awaited moment. 2nd April 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said during his speech in the White House celebrating the American “Liberation Day”. Trump displayed a chart in which tariff rates for different countries were mentioned. The chart showed a 52% duty, including trade barriers and currency policies, imposed by India on the US, as against the 26% revised tariffs that the US will be imposing on Indian products.
“India, very, very tough. Very, very tough. The prime minister just left. He’s a great friend of mine, but I said, you’re a friend of mine, but you’re not treating us right. They charge us 52%,” said Trump.
