Trump’s 26% Tariff: Officials See Mixed Results, Study Continues
Government officials expressed a measured response to President Trump’s newly imposed 26% tariff on April 3, 2025, calling it a predictable move with a patchwork of consequences. As markets adjust and industries grapple with the fallout, authorities have launched a detailed analysis to unpack its full economic impact
Govt analysing impact of 26 pc Trump tariff - The commerce ministry is analysing the impact of the 26 per cent reciprocal tariff or import duty imposed by the US on India, a senior government official said on Thursday. According to the official, the universal 10 per cent tariff will be applicable on all imports into the US from April 5, and the remaining 16 per cent from April 10. The official said the ministry is analysing the impact of the announced tariffs. He said there is a provision that if a country addresses US concerns, the Trump administration may consider reducing the duty against that country.
India-US bilateral trade agreement under discussion
India is already negotiating a bilateral trade deal with the US. The two countries are aiming to finalise the first phase of the deal by September-October this year. "This is a mixed outcome for India, not a setback," the official said. The US President listed the high tariffs imposed by India on US products, along with the reciprocal tariffs he announced on all countries, and imposed a 26 per cent concessional reciprocal tariff on India.
Trump issues tariffs
"This is Emancipation Day, a long-awaited moment. April 2nd, 2025 will always be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day we began to make America prosperous again. We're going to make it prosperous, good, and rich again," Trump said from the White House Rose Garden on Wednesday as he unveiled the tariffs.
Trump: India is very tough
While announcing the tariffs he showed a chart showing the tariffs being imposed by countries such as India, China, the UK and the EU as well as the reciprocal tariffs that these countries will now have to pay. The chart shows that India has imposed a 52 per cent tariff and the US will now impose a concessional reciprocal duty of 26 per cent on India. "India is very, very tough. Very, very tough. The Prime Minister has just left. He is a very good friend of mine, but I said, you are my friend, but you are not treating us right. They charge us 52 per cent," he said.
