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Informist, Thursday, Apr. 3, 2025

 

NEW DELHI – US President Donald Trump on Thursday announced the imposition of 26% tariffs on imports from India to the US. Opting for a discounted reciprocal approach, Trump said his administration would charge half the tariffs imposed by a country on US imports.

 

However, information on the White House website showed the adjusted reciprocal tariff on India to be 27%.  

 

Trump made the announcement at the 'Make America Wealthy Again' event at the White House. The US president said the tariff was calculated based on cumulative tariffs, including non-monetary barriers, imposed by a country on US goods. Based on the calculation, Trump said India imposes a 52% tariff on US goods.

 

"...India very, very tough...Prime Minister (Narendra Modi) just left...he is a great friend of mine. I said you (Modi) are a great friend of mine but you're not treating us right. They (India) charge us 52% and we charge them almost nothing," Trump said. 

 

According to the US government, Trump signed an executive order, instituting reciprocal tariffs on various countries. 

 

"The US imposes a 2.5% tariff on passenger vehicle imports (with internal combustion engines), while India (70%) impose much higher duties on the same product. For networking switches and routers, the US imposes a 0% tariff, but India (10-20%) levies higher rates. For rice in the husk, the US imposes a tariff of 2.7%, while India (80%)," the White House said in a statement. It also said Trump would impose 10% on all countries and this would take effect from Apr. 5. 

 

Apart from India, Trump also slapped 34% tariff on China, 46% on Vietnam, and 32% on Taiwan, among other countries.

 

Trump has expressed displeasure over high tariffs by India on multiple occasions since October, when he was campaigning for the US election. In December, after the Republican party emerged victorious in the election, Trump specifically mentioned the high duty on Harley-Davidson motorcycles, while threatening to impose reciprocal tariffs on India for the first time. Within two months, India slashed customs duty on high-end motorcycles, including the US-based Harley-Davidson.

 

The US is India's top export market with a share of 17% in total outbound shipments. 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 85.50 

 

Reported by Kuldeep Singh

Edited by Avishek Dutta

 

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