In a significant shift in U.S. trade policy, President Donald Trump has introduced new tariffs on imports from multiple countries, with a particular focus on India. Announced during the ‘Liberation Day’ event at the White House Rose Garden on April 2, 2025, the decision is aimed at addressing what he views as unfair trade practices.
India will now face a 26 per cent tariff on its exports to the U.S. Trump justified the move by stating that India imposes significantly higher tariffs on American goods. “India is a great friend, but we need fairness in trade,” he said while explaining the decision. According to the chart, India imposed 56 per cent tariffs, while the United States would now impose a 26 per cent "discounted reciprocal tariff" on India.
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Tariff Measures on Other Major Trade Partners
Even close allies were not exempt, with the European Union facing a 20 per cent tariff and Japan 24 per cent. China will face a 34 per cent tariff. Responding to what the U.S. claims is an excessive 67 per cent duty on American goods. South Korea is set to face a 25 per cent tariff as the U.S. points to its 50 per cent levy on American goods. The United Kingdom, despite its close ties with the U.S., will be hit with a 10 per cent tariff, mirroring the rate it applies to American imports.
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A base tariff of 10 per cent takes effect on April 5, with the higher retaliatory rates kicking In on April 9.
During his announcement of the tariffs, he displayed a chart that listed the reciprocal duties that nations like China, India, the United Kingdom, and the European Union now have to pay in addition to the tariffs that these nations currently impose. After his speech in the Rose Garden, Trump signed two executive orders to cement the new tariff policies. He stated that these tariffs are ‘reciprocal’ and could have been much steeper.
Sanjay Nayar, President of ASSOCHAM, shared his perspective on how the tariffs could impact India.
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He says: “India remains relatively less impacted by the tariffs, but our industries must boost export efficiency and value addition. With reciprocal tariffs worldwide, inflationary pressures could rise. A preferential trade deal may be the way forward, as President Trump still respects PM Modi’s leadership. India Inc would work with the government on this.”
