The United States is set to impose reciprocal tariffs on India and China starting April 2, 2025, as announced by former President Donald Trump. This decision is aimed at countering what Trump calls unfair trade practices by countries that impose high tariffs on American goods.
Trump criticized countries like India and China for imposing higher tariffs on U.S. products while enjoying lower tariffs on their exports to the U.S. He highlighted India’s over 100% tariff on U.S. auto imports as an example of trade imbalance. To address this, the U.S. will now match the tariff rates imposed by these countries.
This move is expected to impact Indian exporters, especially in industries like pharmaceuticals, textiles, and IT services. Higher U.S. tariffs will make these products costlier and could reduce their demand in the American market. Similarly, China’s exports may also face difficulties, escalating the ongoing trade tensions.
India is looking to negotiate with the U.S. to reduce the impact of these tariffs. Commerce Minister Piyush Goyal is currently in talks with U.S. officials to explore trade adjustments and prevent potential losses for Indian businesses. Some industry experts suggest that reducing import duties on U.S. goods could be a way to balance trade relations.
With the tariffs set to begin in April, businesses in both India and China are bracing for higher costs and trade disruptions. While negotiations are ongoing, the new tariffs could reshape global trade policies and impact exporters heavily reliant on the U.S. market.
