The executive order issued by US President Donald Trump has imposed an additional duty of 27 per cent on Indian goods entering the United States. In response, the Commerce and Industry Ministry, led by Piyush Goyal, is carefully examining the implications of this order, the ministry stated on Thursday.
The US President’s executive order on reciprocal tariffs has introduced additional ad-valorem duties that range from 10 per cent to 50 per cent on imports from all trading partners. The baseline duty of 10 per cent is set to be effective from April 5, 2025, while the remaining country-specific additional ad-valorem duties will take effect from April 9. Specifically for India, this additional duty has been calculated at 27 per cent, according to the Commerce and Industry Ministry.
“The Department of Commerce is carefully evaluating the impact of the various measures and announcements made by the President of the United States. In alignment with the vision of Viksit Bharat, the Department is engaging with all stakeholders, including Indian industry representatives and exporters, to gather their feedback regarding the potential effects of these tariffs. Additionally, the Department is analyzing the opportunities that may arise due to these new developments in US trade policy,” an official statement from the ministry said.
On February 13, Prime Minister Narendra Modi and US President Donald Trump jointly announced the “Mission 500” initiative, which aims to more than double bilateral trade between India and the United States, setting a target of $500 billion by 2030. In this regard, discussions are actively underway between the Indian and US trade teams to facilitate the swift conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement. These discussions encompass a broad spectrum of issues of mutual interest, including enhancing supply chain integration, according to the ministry’s statement.
“The ongoing negotiations are centered on fostering growth in trade, investments, and technology transfers between the two nations. We remain in constant dialogue with the Trump Administration on these matters and anticipate further progress in the coming days,” the statement added.
“India highly values its Comprehensive Global Strategic Partnership with the United States and remains committed to working closely with the US to implement the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) initiative for the 21st century. This initiative aims to ensure that our trade ties continue to serve as a pillar of mutual prosperity, driving transformative change for the benefit of both Indian and American citizens,” the statement concluded.
