India is carefully assessing the impact of the 26% reciprocal tariffs imposed by the United States, but officials believe the move is not necessarily a major setback. A senior government official speaking to news agency PTI on Thursday described the development as a “mixed bag,” stating that while the new trade barriers present challenges, they also offer potential opportunities for negotiation.
India’s Commerce Ministry Analyzes Tariff Implications
With the US tariffs set to take effect soon, India’s Commerce Ministry is closely studying the situation. The government is weighing possible responses and examining whether any trade concessions could be offered to mitigate the impact.
The tariffs, announced by US President Donald Trump, include a universal 10% duty on all imports into the US starting from April 5, with an additional 16% added from April 10. These new duties are part of a broader trade policy shift aimed at several countries, including India.
According to the senior official, the increased tariffs are being analyzed carefully. However, there is hope that the US may reduce these duties if India addresses some of Washington’s trade concerns. Bilateral trade discussions between the two nations are already in progress, with both sides hoping to finalize the first phase of a trade deal by September or October this year.
Tariffs Not a Major Blow, Say Officials
“It is a mixed bag and not a setback for India,” the senior official told PTI, suggesting that while the tariffs pose immediate concerns, they also open the door for further trade negotiations.
Sources within the Indian government told BusinessToday TV that they are closely evaluating the indirect macroeconomic impact of the US tariffs, which could be more significant than the direct effects. According to sources, Clause 4 of the US trade policy suggests that tariffs may be lowered if India successfully addresses specific American trade concerns. Officials have stated they will “put their best foot forward” in ongoing discussions.
Prime Minister’s Office Holds Emergency Meeting
In response to the new tariff order, the Prime Minister’s Office (PMO) has called for a high-level meeting to assess the situation, BusinessToday TV reported. The meeting is being chaired by the Principal Secretary to the Prime Minister and includes senior officials from the Commerce Ministry, NITI Aayog, the Department for Promotion of Industry and Internal Trade (DPIIT), and other key government agencies.
Trump Justifies Tariffs as Necessary for US Economic Growth
President Trump defended the tariffs as a necessary measure to counterbalance what he described as unfair trade practices by other nations. He argued that India, among other countries, has long imposed high tariffs on American products, and the new reciprocal tariffs are a way to level the playing field.
During a speech at the White House’s Rose Garden on Wednesday, Trump hailed the tariff decision as a historic moment for American industry.
“This is Liberation Day, a long-awaited moment. April 2, 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 declared.
India Accused of Imposing High Tariffs on US Goods
While explaining the decision, Trump presented a chart showing the tariffs imposed by various countries on American goods, including those from India, China, the UK, and the European Union. According to the chart, India charges up to 52% in tariffs when including trade barriers and currency policies. As a countermeasure, the US will now impose a 27% duty on Indian imports.
Trump also commented on his recent discussions with the Indian prime minister, suggesting that India has been “very tough” in trade negotiations.
“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%,” Trump said.
With India now assessing its response, government officials are expected to issue a formal statement in the coming days. While the increased tariffs could impact various sectors, India is hopeful that continued trade talks with the US will lead to an amicable resolution. The coming months will be critical as both countries navigate this new phase in their trade relationship.
Must Read: ‘India 26%’ Trends On X, Know Why?
