New Delhi, April 2, 2025 – India will adopt a “measured and calibrated” approach to US President Donald Trump’s reciprocal tariffs, a senior government official told Hindustan Times on Wednesday. Trump’s announcement of a 26% tariff on Indian exports—half of India’s 52% levy on US goods—has stirred economic concerns, but the official downplayed it as a “mixed bag” rather than a setback. With bilateral trade at $200 billion, both nations aim to hit $500 billion in five years via a fast-tracked trade agreement.
The commerce ministry is dissecting the tariffs’ impact, set to roll out April 5 with a universal 10% levy, followed by an additional 16% on April 10. Sectors like auto components, chemicals, and shrimp face pressure, though pharmaceuticals and energy are exempt. India’s hopes hinge on negotiations, leveraging Modi’s rapport with Trump—termed a “great friend” in the US leader’s speech. Yet, Indian-American lawmakers like Ro Khanna warn of a consumer price hike in the US, urging dialogue.
India’s tariff history—once dubbed a “tariff king” by Trump—reflects a protective stance, but recent cuts on US bikes and cars signal flexibility (NDTV, Feb 2025). The real challenge? Balancing export competitiveness with domestic interests amid global trade flux. Will talks avert a war, or push India to diversify markets?
