In response to the United States’ recent imposition of reciprocal tariffs, India’s Commerce Ministry announced on Thursday that it is carefully studying the potential opportunities arising from this shift in US trade policy.
The ministry stated that it is assessing the impact of the new measures announced by US President Donald Trump, who issued an Executive Order on Reciprocal Tariffs. These new tariffs impose additional ad valorem duties ranging from 10% to 50% on imports from all trading partners.
According to the Commerce Ministry, the baseline 10% duty will come into effect on April 5, 2025, while country-specific additional tariffs will be imposed from April 9, 2025. For India, a 27% additional duty has been outlined under Annex I of the Executive Order.
“The Department of Commerce is carefully examining the implications of the various measures and announcements made by the US administration. Keeping in view the vision of Viksit Bharat, the department is engaging with stakeholders, including the Indian industry and exporters, to assess the impact of these tariffs and explore potential opportunities,” the ministry said in a statement.
The tariff issue comes at a critical juncture when both nations are working towards expanding bilateral trade under the ‘Mission 500’ initiative, announced by Prime Minister Narendra Modi and President Trump on February 13, 2025. This initiative aims to more than double bilateral trade to $500 billion by 2030.
In light of these developments, India and the US continue negotiations on a Bilateral Trade Agreement, covering multiple sectors.
“Discussions are ongoing between Indian and US trade teams to expedite a mutually beneficial agreement. These talks focus on deepening supply chain integration and enhancing trade, investment, and technology transfers,” the ministry added.
The Commerce Ministry reiterated that India remains committed to its Comprehensive Global Strategic Partnership with the US and is actively working to implement the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology’ (COMPACT) framework. This initiative aims to ensure that trade remains a key pillar of prosperity for both nations.
Since beginning his second term in office, President Trump has reinforced his commitment to tariff reciprocity, emphasizing that the US will match duties imposed by other nations, including India, to ensure fair trade practices.
As India assesses the impact of these new tariffs, its focus remains on minimizing trade disruptions while leveraging emerging opportunities in the evolving global trade landscape.
