New Delhi: On April 2, 2025, US President Donald Trump made a major announcement regarding modified tariff policies for several countries. The recent amendment in the tariff policy, which Trump called a “kind reciprocal,” has discounted reciprocal tariffs for several countries, including India, which will be charged 26% on its imports. Making this big announcement, Trump said the tariff on imports will not be entirely reciprocal for other nations; however, the US will charge 50% of the tariff rates they impose on American goods.

Trump’s New Tariff Policy: India Faces 26% Tariff

On Wednesday, Donald Trump announced the new tariff policy in a press conference organized at the White House. He revealed a list of countries for which the new tariffs will be imposed. Also, the list shows the levies the listed nations put on American goods. The US President said that as India charged 52% tariffs on US imports, the nation will subject a 26% tariff rate on its goods.

According to Reuters, a reputed British agency, a senior White official confirmed that the discounted reciprocal tariffs will come into effect from April 9 at 12:01 am onwards. He referred to India’s PM, Shri Narendra Modi, as a great friend as he recalled his recent visit to their nation in February. However, he also highlighted that India has not been treating the US right due to its strict tariff policies.

He further said that the Indian PM had just left and that he is a great friend of his. He told the PM that he’s his friend, but their country has not been treating the US right. He further said that it has been only 7 years since I’ve gained power as US President, but India charged 56% tariffs on us, while the US has been charging almost nothing on Indian goods for decades.

Trump’s Discounted Reciprocal Tariffs Impact

In a press conference on April 2, US President Donald Trump announced that a minimum 10% baseline tariff rate will be imposed on all imports, and higher rates will be imposed on countries with the highest unfavorable trade balance with the US. The latest announced reciprocal tariffs vary from 10% to 49%. The US President further said that if other nations want their tariff rate to be zero, they must establish their manufacturing facilities in America, as foreign nations have to pay tariffs to access the US market.

Highlighting the unfavorable trade balance with the US, the president said that this is no longer an economic problem but has become a national emergency, and he has established new tariff policies as he’s prioritizing his nation’s rights. The latest announced 25% tariffs on all the automobiles assembled outside the US that will come into effect after April 3 will lead their prices to skyrocket outside the nation.

The US President called the discounted reciprocal tariff a declaration of economic independence and an opportunity that will allow Americans to prosper and get free from the strict tariff policies the nation’s taxpayers have been facing for the past 50 years. Describing April 2 as Liberating Day for Americans in terms of imports and exports, the president called his newly established tariff policy a “kind reciprocal,” as he could be harsher on the nation’s trading partners.

He further announced 34%, 25%, 24%, 32%, and 20% tariffs charged by the US for China, South Korea, Japan, Taiwan, and the European Union, respectively. After this huge announcement, the president signed the executive order on the reciprocal tariffs policy.

Trump on India Tariff & Reciprocal Tariff Impact on India

Trump highlighted that India charges higher tariff rates on the US; however, Indian goods will be imposed with a 26% tariff rate under the new tariff policy introduced by Donald Trump. Some Indian exports might face higher import duties after this policy comes into effect, which has made traders worry about the impact on export-driven sectors.

However, SBI’s latest research report has clarified that India will not face much from this. A tariff meaning a tax paid by businesses or individuals on imported or exported goods. The SBI highlighted that the nation has diversified its export routes and has been utilizing new routes to access the US markets from Europe through Middle Eastern routes.

Additionally, before this announcement, Commerce & Industry Minister Piyush Goyal pointed out that a deep discussion regarding the bilateral cooperation in trade barriers had occurred during the four-day India-US trade talks. He has said that both nations are aiming to develop a trade agreement before the end of this year to reach their long-term goal of attaining USD 500 billion in bilateral trade by 2030