Union Minister of State for Finance Pankaj Chaudhary announced on Thursday that India would examine and evaluate the effects of the 27% reciprocal tariffs imposed by the United States. He made these comments in reaction to the recent increase in tariffs that hurt Indian exports to the United States.
Chaudhary highlighted the two countries’ disparate trade agendas while addressing media in New Delhi. “America First for Donald Trump, and India First for Modi ji.” We will examine the circumstances, evaluate their implications, and decide on the appropriate course of action,” he stated.
Industry association Sanjay Nayar, president of ASSOCHAM, said he was certain the tariffs would not have a major impact on India. Even if the figures seem high, she pointed out that India is in a better position than many Southeast Asian nations. “Trade and supply chains within Asia will undergo a significant realignment, which will require time.” Our impact is less severe because the pharmaceutical industry is exempt. But the Indian sector needs to become more efficient, and India should look for methods to provide the US more access to its markets,” she continued.
US President Donald Trump reaffirmed his administration’s emphasis on trade justice and reciprocity on April 2 by announcing broad tariff impositions on several nations. Trump has prioritized reciprocal tariffs since the start of his second term in February, seeking to impose the same taxes on foreign goods as they do on American ones. The strategy encourages the decrease or removal of tariffs on US exports while targeting alleged unfair trade practices, such as VAT systems, non-monetary obstacles, and subsidies.
China (34 percent), the European Union (20 percent), Vietnam (46 percent), Taiwan (32 percent), Japan (24 percent), India (26 percent), the United Kingdom (10 percent), Bangladesh (37 percent), Pakistan (29 percent), Sri Lanka (44 percent), and Israel (17 percent) are among the major economies that will be subject to tariffs, the announcement stated.
According to economists, the effects of these tariffs on India’s industrial sector are not entirely positive. On the one hand, Indian exporters have an advantage over rivals in China, Thailand, and Vietnam due to lower tariffs, which could lead to an arbitrage opportunity. However, as exporters from high-tax nations look for other trading destinations, Indian manufacturers may see more competition in other international markets.
