Trump Announces 27% Tariff on India, Higher Than Initially Stated. The Indian government is analyzing the impact, and negotiations with the US continue.
Trump Tariff: On April 2nd, US President Donald Trump, referring to the day as 'Liberation Day,' announced the imposition of reciprocal tariffs on several countries. While initially a 26% tariff on India was mentioned, the White House's annex now lists the rate as 27%. Trump stated in his address that India levies a 52% tariff on US goods, therefore, the US would impose half that amount in return.
The White House List and New Revelation
Trump initially displayed a list showing a 26% tariff on India during his media address, but the subsequently released official annex revised it to 27%. This suggests the Trump administration maintains flexibility in its tariff policy and keeps the door open for negotiations.
Ongoing Negotiations Between India and the US
India is already engaged in discussions with the US on a Bilateral Trade Agreement (BTA). Both countries aim to finalize the first phase of the agreement by September-October this year. Close monitoring is underway regarding the Indian government's stance following the Trump administration's new tariff.
The Indian Government's Response
According to a senior Indian government official, the Ministry of Commerce is analyzing the overall impact of the US tariffs. They stated:
- A universal 10% US tariff will come into effect on April 5th.
- An additional 16% tariff will be effective from April 10th.
- If a country raises concerns about the tariffs with the US, the Trump administration may consider reducing the tariff rate.
Trump's Statement: 'Modi is a good friend, but...'
In his address, Donald Trump mentioned Prime Minister Narendra Modi, stating that Modi had visited the US and they had discussed trade. Trump said, "Modi is a good friend of mine, but India always levies a 52% tariff on US goods, which is not fair."
