Reciprocal Tariffs
Indian exporters may benefit from US tariffs on other nations, says govt source
This story was originally published at 17:59 IST on 17 February 2025
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--Source: High US tariffs on other nations may make our exports competitive
--Source: Contours of trade deal with US once its negotiating team in place
--Govt source:Will wait until US actually imposes reciprocal tariff on India
NEW DELHI – Notwithstanding US President Donald Trump's threat to impose reciprocal tariffs on New Delhi, Indian exporters may stand to gain from the US tariff actions on other nations as it can help make exports more competitive, a commerce ministry official said. Trump has threatened to impose reciprocal tariffs on all nations, including India, based on the duty levied on the US goods.
"There may be gains for us, in terms of us becoming more competitive if more tariff is imposed on one particular country, which has more capacity," the official said hinting at duties on China. The US government has imposed 10?ditional tariffs on Chinese goods.
Commenting on the implications of the reciprocal tariffs on Indian goods, the official said that the commerce ministry would want to wait until Washington actually imposes duty on India. "What shape it will take when the act comes to force, we are not aware yet," the official said. "We will take action only after the reciprocal duty is imposed."
Trump has threatened to impose high tariffs on Indian goods on several occasions. However, following his meeting with Prime Minister Narendra Modi last week, India is hopeful that the stance towards New Delhi may soften given that the two sides have agreed to negotiate a trade deal. The two leaders have set a target to take bilateral trade to $500 billion by 2030.
Modi and Trump have agreed to negotiate a multi-sectoral Bilaterral Trade Agreement and have set the aim to conclude its first tranche by December. New Delhi is waiting for Washington to form its negotiating team, the official said. "Once the negotiating team is in place, we will work out the contours of the trade agreement."
The US is India's top export destination, with a share of 17% of India's total merchandise exports. In 2023-24 (Apr-Mar), India exported goods worth $77.52 billion to the US and had a trade surplus of $35.32 billion. End
US$1 = INR 86.88
Reported by Krity Ambey
Edited by Saji George Titus
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