tariffs

Earlier today, in a retaliatory move, China announced that it would increase its tariff on US goods from 34 per cent to 84 per cent starting April 10, as reported by Al Jazeera.

Trump's retaliatory tariffs removed trillions from global markets while ₹20.16 lakh crore were eliminated from India's market.

The FIEO President expressed optimism about the impact of the tariffs on Indian exports, noting that while India faces a tariff of around 27 per cent, this remains manageable compared to the higher tariffs imposed on competing nations, particularly China.

Admitting that the reciprocal tariffs pose a challenge for India, the senior government official expressed hope that there is scope for negotiations.

The Modi govt has been taking proactive measures, including trader negotiations, tariff relaxations, diversification and sectoral analysis to mitigate the negative impact of the US reciprocal tariffs.

Trump stated that the tariff hike was in response to Ontario Premier Doug Ford's decision to impose a 25% tax on electricity exports to the U.S.—a move that itself was a reaction to Trump's initial 25% tariffs on Canadian imports.