US Resets India Tariff Hike to 26%; China Plans WTO Move

New Delhi adopts a wait-and-watch approach as US recalibrates tariffs and trade deficit math

- Dhirendra Kumar

As the US recalibrates its reciprocal tariff policy following a data miscalculation, India will now face an additional 26% tariff across a range of commodities starting 9 April. This marks a slight downward revision from the 27% hike announced on 2 April after the US administration corrected its trade deficit computations. The change, while marginal, comes at a time of growing concern over the potential global fallout of tit-for-tat trade measures.

The 26% additional tariff will apply over and above the current Basic Customs Duty (BCD) rates on various commodities.

The reciprocal tariff move is part of Washington's broader strategy to enforce a baseline 10% tariff on imports from 57 countries, including several key Asian partners.

A White House document updated on Friday shows that the Trump administration has revised reciprocal tariffs for at least 14 countries, including India.

India's rate was 26% during President Donald Trump's public announcement on 2 April at the White House Rose Garden. However, the official annex listed the rate as 27%. With the revision, India will face the indicated 26% additional duty.