The US will implement reciprocal tariffs on imports from countries imposing high tariffs on US goods, including India on 2 April 2025. President Donald Trump announced this measure during a joint session of Congress, criticising India’s 100% tariff on certain US products as unfair.
Trump intends to apply the same tariff on imports from foreign countries as those nations impose on our exports.
“Other countries have used tariffs against us for decades and now it’s our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada — have you heard of them? And countless other nations charge us tremendously higher tariffs than we charge them,” he said.
In response, India’s Commerce Minister, Piyush Goyal, has traveled to the US to negotiate better trade terms and seek concessions before the tariffs take effect.
Indian exporters, particularly in the engineering goods sector, are concerned about the potential impact on their exports and are urging the government to reduce import duties on specific US goods to secure more favorable trade conditions. If the US imposes reciprocal tariffs on India, the price of Indian-made goods in the US market will increase because of higher import duties. This could make Indian exports less competitive and decrease their appeal to US buyers.
