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Keep Negotiating
August 04, 2025
|Business Standard
US tariffs on India are not set in stone
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The tariff rate of 25 per cent, which United States (US) President Donald Trump has decided will be applied to Indian exports to the US, may not, eventually, be the final rate. It may effectively wind up being higher if he carries out his threat to add a surcharge related to India's increasing purchases of Russian oil. It may be lower if New Delhi's negotiators pull some sort of a broader deal together. It is also worth remembering that there will be multiple exceptions to this headline tariff rate. Some goods that compose a large part of India-US trade—mobile phone handsets, for example—have a tariff rate different from the country-specific ones Mr Trump has announced. The US administration is, after all, keen to minimise the inflationary impact of its tariffs. The majority of Apple's iPhones for the US market are now being assembled or made in India and not in China.
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