New Delhi says Trump tariffs effect ‘mixed bag’
(MENAFN) India is currently evaluating the effects of a new 26% reciprocal tariff imposed by US President Donald Trump, which is set to take effect within ten days, according to the Press Trust of India (PTI). A senior Indian government official described the situation as a “mixed bag,” rather than a significant setback.
Trump introduced the tariffs on Wednesday, targeting imports from several nations, including India, China, the UK, and the EU. At a White House press briefing, Trump criticized India for imposing high tariffs on US goods, saying, “They charge us 52%,” while also describing Prime Minister Narendra Modi as a “great friend” and “great negotiator.”
India’s Ministry of Commerce is analyzing the potential impact, with hopes that ongoing discussions over a bilateral trade agreement could lead to a reduction in duties. Both countries are working toward finalizing the first phase of the agreement by October.
Industry experts believe the effect of the new tariffs will be uneven, and not severely damaging. During Modi’s visit to Washington in February, India made concessions, such as reducing basic customs duties on several products—seen as a move to address US concerns. The 2025 budget further proposed cutting peak import duties from 150% to 70%, and reducing average tariffs to below 11%.
Additionally, India has offered tariff reductions on US agricultural goods like almonds, cranberries, and bourbon whiskey, and has expressed willingness to increase purchases of American defense hardware and liquefied natural gas.
Rather than retaliate, India plans to negotiate patiently, aiming to reach a balanced consensus, said Kranthi Bathini, an equity strategist at Wealthmills Securities. International analysts, including those from Goldman Sachs, Fitch, and Nomura, believe the overall impact on India’s economy will be limited, given its strong domestic demand and economic resilience.
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