In response to US President Donald Trump’s recent executive order imposing reciprocal tariffs, The Indian government on Thursday said that it is assessing the implications of the new trade policy and exploring opportunities that may arise from it.
The Ministry of Commerce and Industry issued a statement detailing the US administration’s new tariff regime, which includes additional ad-valorem duties ranging from 10% to 50% on imports from all trading partners. Under this executive order, the baseline 10% duty will be effective from April 5, 2025, with country-specific additional duties coming into force on April 9, 2025. For India, the additional tariff as per the executive order stands at 27%.
“The Department of Commerce is carefully examining the implications of the various measures and announcements made by the US administration. In line with the vision of ‘Viksit Bharat,’ the department is engaging with stakeholders, including Indian industry and exporters, to gather their assessments of the new tariffs and to evaluate the overall situation,” the ministry said in its statement.
The Ministry of Commerce said that it is actively studying potential opportunities arising from the new US trade policy, noting that the situation is being assessed with a long-term view of the country’s strategic interests.
Prime Minister Narendra Modi and US President Trump had launched ‘Mission 500’ on February 13, 2025, with the ambitious goal of more than doubling bilateral trade to USD 500 billion by 2030. To this end, ongoing discussions between Indian and US trade teams are focused on the swift conclusion of a mutually beneficial Bilateral Trade Agreement. This agreement would cover a wide range of issues, including deepening supply chain integration and enhancing trade, investment, and technology transfers between the two nations.
“The ongoing discussions aim to facilitate the growth of trade, investments, and technology transfers between both nations,” the statement said. “We remain in close contact with the Trump Administration and expect to make progress in the coming days.”
India also reaffirmed the importance of its Comprehensive Global Strategic Partnership with the United States, committing to continued cooperation on the ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) initiative. The goal of this partnership is to ensure that trade ties between the two countries remain a pillar of mutual prosperity, driving transformative changes for the benefit of the people of both nations.
Since President Trump began his second term, he has consistently emphasized the principle of tariff reciprocity, asserting that the United States will mirror tariffs imposed by other countries, including India, to ensure fair trade practices.
