On April 2, 2025 the US President Donald Trump announced reciprocal tariffs on imports from about 90 nations that are above a 10% across-the-board tax applied to all imports to the U.S.
- He described the announcement as “Liberation Day.”
Key Highlights
- As per announcement, some countries will face only the universal tariff of 10%, while imports from dozens of other countries will be charged a higher specific reciprocal import levy.
- For instance, Australian imports will face the baseline rate of 10%, while China will face a 34% tariff.
- The chart indicated that India charged 52% tariffs, and the US would now charge India a discounted reciprocal tariff of 26%. Earlier, the White House documents showed a 27% duty on India. However, as per the latest updates, it has been revised downwards to 26%.
India-US Trade
- From 2021-22 to 2023-24, the U.S. was India’s largest trading partner. The U.S. accounts for about 18% of India’s total goods exports, 6.22% in imports, and 10.73% in bilateral trade.
- India had a trade surplus with America of $35.32 billion in goods in 2023-24. This was $27.7 billion in 2022-23, $32.85 billion in 2021-22 and $22.73 billion in 2020-21.
- In 2024, India’s main exports to the US included drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), gold and other precious metal jewellery ($3.2 billion), etc..
- Imports from America included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal, coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electric machinery ($1.4 billion), aircraft, spacecraft and parts ($1.3 billion), and gold ($1.3 billion).
(Source: TH)
