After weeks of anticipation, US President Donald Trump has announced sweeping new tariffs on trading partners, calling it a "declaration of economic independence" for the United States.
A baseline tariff of 10 per cent will apply to imports from around the world, with steeper duties for countries that the US considers unfair traders. India faces a 26 per cent tariff—higher than South Korea, and Malaysia, but lower than Japan, China, Vietnam, and Thailand.
"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 per cent. You have to understand, we charge them almost nothing for years and years and decades."
This places India in a competitive yet challenging position, as it seeks to balance its trade relations with the US while facing stiffer competition from some Asian counterparts.
According to reports, India’s Commerce Ministry is assessing the impact of the tariff hike, describing it as a "mixed bag rather than a setback." Officials speaking to PTI have stated that negotiations for a bilateral trade agreement with the US are progressing, with India aiming to finalise the first phase of the deal by the autumn of this year.
The universal 10 per cent tariff announced by the US will take effect on 5th April, followed by higher duties on selected countries from 10th April. The Trump administration has indicated that it may lower tariffs for nations that address US trade concerns.
With these tariffs in place, trade dynamics between New Delhi and Washington have grown more complex, adding pressure on both sides to find common ground soon.
