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Can India Dodge Trump's Tariff?
Mint Kolkata
|April 04, 2025
S President Donald Trump announced sweeping reciprocal tariffs on its trading partners on 2 April, a move aimed at reducing dependence on foreign products amid the country's ballooning trade deficit.
Trump announced a 27% additional tariff on imports from India, from 9 April.
Firms in sectors such as apparels & textiles and chemicals, which have higher exposure to the US, may bear the brunt of the new tariff, given the risk of muted near-term order flows and pricing pressures amid the disruption in global supply. A silver lining is that the direct impact of this development on India is likely to be limited.
"At first glance, the 27% tariffs imposed on India seem rather high, higher than what India levies on most US items. However, two of India's high-ticket exports—IT services and pharmaceuticals, are untouched by this announcement," Bernstein said on 3 April. Also, relatively higher tariffs have been levied on other Asian nations, so India may get a competitive edge.
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