US Sticks On Imposing Reciprocal Tariffs On India From April 2

(MENAFN- KNN India) New Delhi, Mar 21 (KNN) In a move that could strain bilateral trade relations, US President Donald Trump announced that the United States would impose reciprocal tariffs on Indian imports starting April 2.

The decision, which targets agricultural and pharmaceutical exports, comes in response to what Trump described as India's high tariff rates on American goods.

“I have a very good relationship with India, but they are one of the highest tariffing nations in the world. I believe they are probably going to be lowering those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us,” Trump said in an interview with Breitbart News.

The announcement follows recent discussions between Indian and US officials on finalizing a bilateral trade agreement. While India has expressed willingness to negotiate lower tariffs, Trump's move could add pressure to the negotiations.

The Indian steel and aluminum industries have already felt the impact of US-imposed 25 per cent tariffs on these metals. Industry experts estimate that exporters dealing in goods worth $5 billion have been affected.

Furthermore, India's Commerce and Industry Ministry has proposed a 12 per cent duty on specific imported steel products, which may drive up domestic prices.

According to SBI research, the US tariff rate on Indian goods has fluctuated, rising from 2.72 per cent in 2018 to 3.91 per cent in 2021, before slightly declining to 3.83 per cent in 2022. Meanwhile, India's tariffs on US imports increased from 11.59 per cent in 2018 to 15.30 per cent in 2022.

Despite tensions, India has lowered tariffs on select US products, including bourbon whiskey and motorbikes. However, a Goldman Sachs report warns that additional tariffs or non-tariff barriers could further complicate trade relations between the two nations.

(KNN Bureau)

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