The reciprocal tax of 26% imposed on indian imports by US President Donald Trump. For the indian business community, it was a shock. He displayed a graph showing the suggested reciprocal tariffs. Then he declared 'Liberation Day'. Foreign countries have "looted, pillaged, raped, and plundered" the united states, according to Donald Trump. He also said, "April 2nd, 2025, marks the day we rebirthed American industry, reclaimed America's destiny, and began to Make America Wealthy Again."
Regarding india, Trump
"India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine, but I said, 'You're a friend of mine, but you're not treating us right. They charge us 52%. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China."
Which sectors does the exemption apply to?
Pharmaceutical exports are currently excluded from the reciprocal tariff under Trump. For indian businesses like sun Pharma (33% of US revenue), Dr. Reddy's Laboratories (48.5%), and Aurobindo Pharma (48.3%), it has been a relief. Steel, copper, bullion, energy, and a few other minerals are also exempt from the most recent tariff pronouncements.
Which sectors will Trump's reciprocal tariffs impact?
Electronics: The electronics sector in india relied on the US for 32% of its exports in the financial year ended march 2024. Trump's decision will impact this sector.
Textiles & Apparels: With the US increasing tariffs on Chinese and Vietnamese imports by 34% and 46%, respectively, India's textile and apparel sector may become more competitive. However, the US's increasing tariffs may provide difficulties for indian truck exporters.
Agriculture and food processing: Higher duties may be imposed on indian exports to the US, including rice, spices, and seafood.
Machinery and electronics: Higher tariffs on Chinese imports may cause US consumers to turn to indian producers.
In 2018, the united states levied a 25% tariff on steel imports and a 10% tax on aluminum imports, which had a significant impact on indian exporters.
Regarding india, Trump
"India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine, but I said, 'You're a friend of mine, but you're not treating us right. They charge us 52%. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China."
Which sectors does the exemption apply to?
Pharmaceutical exports are currently excluded from the reciprocal tariff under Trump. For indian businesses like sun Pharma (33% of US revenue), Dr. Reddy's Laboratories (48.5%), and Aurobindo Pharma (48.3%), it has been a relief. Steel, copper, bullion, energy, and a few other minerals are also exempt from the most recent tariff pronouncements.
Which sectors will Trump's reciprocal tariffs impact?
Electronics: The electronics sector in india relied on the US for 32% of its exports in the financial year ended march 2024. Trump's decision will impact this sector.
Textiles & Apparels: With the US increasing tariffs on Chinese and Vietnamese imports by 34% and 46%, respectively, India's textile and apparel sector may become more competitive. However, the US's increasing tariffs may provide difficulties for indian truck exporters.
Agriculture and food processing: Higher duties may be imposed on indian exports to the US, including rice, spices, and seafood.
Machinery and electronics: Higher tariffs on Chinese imports may cause US consumers to turn to indian producers.
In 2018, the united states levied a 25% tariff on steel imports and a 10% tax on aluminum imports, which had a significant impact on indian exporters.
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