What reciprocal US tariffs could mean for India

If the US imposes reciprocal tariffs, India's exports to the country could drop by $2-3.5 in FY26

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US President Donald Trump has been relentless in his pursuit of a tariff overhaul ever since assuming office in January.

After making Mexico, China, and Canada his first victims (even though he paused some of the moves for a limited time), and threatening 25% tariffs on all steel and aluminium imports, he then announced his intention to introduce reciprocal tariffs on US's imports from other countries, including India. Highlighting the "high" tariffs from nations like Brazil, India, and China, he stated that his reciprocal tariff plan would be implemented starting 2 April.

The US has consistently been India's biggest trade partner, with a 17.7% share in its total exports in FY24. However, India is one of many sources of imports for the US: it made up just a m PLAI 2.7% share of total US imports in FY24. India's dependence on US goods is more: the US's share in India's total imports was higher at 6.2% in FY24.

India has maintained a consistent merchandise trade surplus with the US, which reached $35.3 billion in FY24.

How much tariff do India and US charge each other?