26% Trump tariff on India not a setback, says Commerce Ministry

Union Commerce Ministry analyzing impact of 26% US tariffs on India; negotiations ongoing for bilateral trade agreement.

The Union Commerce Ministry is analysing the impact of 26 per cent reciprocal tariffs or import duties imposed by the United States on India, a senior government official said on Thursday (April 3, 2025).

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According to the official, the universal 10 per cent tariffs will come into effect on all imports into the United States from April 5 and the remaining 16 per cent from April 10.

"The Ministry is analysing the impact of the announced tariffs," the official said, adding there is a provision that if a country would address the concerns of the US, the Trump administration can consider reducing the duties against that nation.

India is already negotiating a bilateral trade agreement with the U.S.. The two countries are aiming to finalise the first phase of the pact by fall (September-October) of this year.

"It is a mixed bag and not a setback for India," the official said.

The U.S. President listed the high tariffs charged by India on American products as he announced reciprocal tariffs on countries across the board, declaring a 26 per cent "discounted" reciprocal tariff on India.