By New Delhi – The Indian government is assessing the economic consequences of the 26% reciprocal tariff imposed by the United States, a senior official from the Ministry of Commerce confirmed on Thursday. The move, announced by U.S. President Donald Trump, is part of a broader effort to counter nations that impose higher trade duties on American exports.
According to the official, the first phase of the new tariff policy will introduce a universal 10% duty on all imports into the U.S. starting April 5. The remaining 16%—raising the total tariff on Indian goods to 26%—is set to take effect on April 10.
“The government is carefully evaluating the implications of these tariffs. While there will be challenges, it is not a major setback for India,” the official stated, adding that negotiations could still influence the final policy. Trump’s administration has indicated that countries willing to address U.S. trade concerns may see adjustments in the imposed tariffs.
Ongoing India-U.S. Trade Discussions
Leading up to Trump’s announcement, the Indian government had established a monitoring unit within the Commerce Ministry to track developments and analyze potential responses.
Commerce Minister Piyush Goyal had traveled to Washington, D.C., last month to push for tariff exemptions and strengthen bilateral trade relations. The visit was part of ongoing negotiations to finalize a trade agreement between the two nations, with both sides targeting a preliminary deal by September-October this year.
India had already introduced tariff reductions in the Union Budget on February 1, lowering peak import duties from 150% to 70%, and bringing the average tariff rate down to below 11% from 13%. These steps were aimed at addressing some of the concerns raised by the U.S.
Trump Criticizes India’s Trade Practices
President Trump officially announced the tariffs on Thursday, referring to April 2 as “Liberation Day.”
“This is a historic moment. April 2, 2025, will be remembered as the day American industry was reborn, the day we reclaimed our economic destiny, and the day we set out to make America prosperous again,” Trump declared.
During the announcement, Trump presented a chart comparing existing foreign tariffs on U.S. goods with the new reciprocal duties now being enforced. India was specifically mentioned, with Trump asserting that its trade policies have been unfair to American businesses.
“India is a tough negotiator—very tough. Prime Minister [of India] is a great friend, but I told him, ‘You’re not treating us fairly.’ They impose a 52% tariff on our goods,” Trump stated.
According to the figures presented, India’s trade policies, including tariff and currency valuation adjustments, equate to a 52% duty on American exports. In response, the U.S. has imposed a reciprocal tariff of 26%, which Trump described as a “discounted” rate.
Looking Ahead
While the new tariff structure is set to take effect soon, ongoing diplomatic discussions could still lead to modifications. Experts believe that continued dialogue between the two nations will be critical in mitigating the impact of these trade measures and ensuring a balanced agreement.
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