Congress MP Shashi Tharoor has expressed concern over the United States’ decision to impose a 26% reciprocal tariff on Indian goods. “We still don't know the full implications of all of this. Certainly, if we are at a 26% tariff, then Indian exports will become less competitive. It also depends on who the competition is,” he said.He further added “We have a bilateral trade deal coming out of the negotiations; then we might be able to moderate some of the elements in the current decision announced on April 2. In the short term, a 26% tariff sounds like bad news.”
US tariff part of broader policy shift
The United States has announced a 26% tariff on a range of imports as part of a broader trade policy realignment. The move, aimed at countering what the US deems unfair trade practices, is intended to protect domestic industries through reciprocal measures. It applies to multiple countries and sectors and is framed by the Trump administration as a corrective step to ensure fair market access for American exporters and manufacturers.
India faces competitiveness challenge
India is among one of the countries directly impacted by President Trump's tariffs. The tariff targets key Indian exports such as textiles, pharmaceuticals, and engineering goods. Exporters warn that the move could undercut their pricing advantage in the US market. The announcement also comes during an ongoing effort by both nations to finalise a bilateral trade agreement.
Government assessing industry response
The Ministry of Commerce issued a statement saying, “Keeping in view the vision of Viksit Bharat, the Department is engaged with all stakeholders, including Indian industry and exporters, taking feedback of their assessment of the tariffs and assessing the situation. The Department is also studying the opportunities that may arise due to this new development in the US trade policy.”
