Government consulting stakeholders, identifying areas of gains following Trump's tariff

Prime Minister Narendra Modi and US President Donald Trump

The commerce and industry ministry is carefully examining the implications of US President Donald Trump's reciprocal tariffs, which were announced early on April 3, and is engaged with stakeholders, seeking feedback from India Inc and exporters.

It is also studying the opportunities that may arise from the new development in US's trade policy, the ministry said in a statement, hours after Trump announced sweeping tit-for-tat tariffs on goods imported to America by rivals as well as allies.

India will face a baseline duty of 10 percent from April 5,  while the remaining country-specific additional ad-valorem levy of 27 percent will be effective April 9, as per the Annex I of the Executive Order, the ministry said, referring to the order issued by Trump.

While the ministry has gone by the annex document that shows a 27 percent tariff on Indian goods, the chart that Trump held for the media at the White House briefing showed Indian tariff at 26 percent.

A Bloomberg report said that its review of published data found that the White House annex listing future reciprocal tariff rates differed for at least 14 economies, including India, from what was on the charts presented by Trump.

The commerce ministry said discussions were are between Indian and US trade teams to expeditiously conclude a mutually beneficial, multi-sectoral Bilateral Trade Agreement (BTA).

"These cover a wide range of issues of mutual interest including deepening supply- chain integration. The ongoing talks are focused on enabling both nations to grow trade, investments and technology transfers. We remain in touch with the Trump administration on these issues and expect to take them forward in the coming days," the ministry's statement said.

India and the US are discussing the contours of a BTA, which is part of a new goal – "Mission 500” – aiming to more than double bilateral trade in goods and services to $500 billion by 2030, as agreed during Prime Minister Narendra Modi’s visit to America on February 13.

Both nations are looking to agree to the first tranche of the BTA by the fall of this year.

In 2023, bilateral trade in goods and services between India and the US stood at $190.08 billion.

India ranked tenth among the top nations that export to US, at $91 billion in 2024, with Mexico, China and Canada occupying the top three positions. America is India's top export destination and fourth-largest source of imports.

"India values its Comprehensive Global Strategic Partnership with the United States and is committed to working closely with the US to implement the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) for the 21st century to ensure that our trade ties remain a pillar of mutual prosperity and drive transformative change for the benefit of the people of India and the US," the statement added.