US President Trump imposes 26% trade tariff on India

Washington DC (USA) – US President Donald Trump has imposed new tariffs on several countries worldwide, including India. A 26% reciprocal trade tariff has been levied on goods imported from India. The Trump administration had signaled the imposition of new trade tariffs from 2ndApril, and Trump officially announced the new tariffs in a press conference.

Lower tariff on India compared to China, Vietnam, and Taiwan

Although India’s tariff is relatively lower compared to some other Asian countries, it is still higher than several others. The tariffs imposed are as follows :

  • China – 34%
  • Vietnam – 46%
  • Thailand – 36%
  • Indonesia – 32%
  • Pakistan – 29%

Meanwhile, tariffs on other Asian nations include :

  • Japan – 24%
  • South Korea – 25%
  • Taiwan – 32%
  • Malaysia – 24%

Additionally, the European Union will face a 20% tariff, while the UK will be subjected to a 32% tariff.

India might benefit too

India faces tough competition from China and Vietnam in the US market. Given this situation, some analysts believe the new tariffs might benefit India in certain aspects.

Even though Modi is a good friend, India imposes 52% trade tariff on us : Trump

Donald Trump said, ‘Indian Prime Minister Narendra Modi recently completed his visit. He is a very good friend of mine. However, I told him, ‘You are a good friend, but you do not treat us fairly’. India imposes a 52% trade tariff on us, whereas we have almost always imposed close to zero tariffs on them over the years’.

Which products will be affected ?

Despite the increased tariffs, Indian clothing and footwear will remain cheaper than those from other countries, potentially boosting their sales. However, the trade tariff is expected to impact electronics, gems, and jewelry. On the other hand, auto parts and aluminium products will not be subjected to the new tariffs.

India will first analyse the tariff : Union Government

Pankaj Chaudhary, India’s Minister of State for Finance

India’s Minister of State for Finance, Pankaj Chaudhary, responded by saying, ‘For Trump, America comes first, and for Modi, India comes first. We will first analyse the tariff, then evaluate its impact, and determine how to respond’.