“Mixed Bag, Not Setback”: India Analyzing Impact of Trump’s 26% Tariff

Centre says it’s assessing implications of the US tariffs on Indian exports and supply chains, terms move a ‘challenge, not a crisis’.

New Delhi | April 3, 2025 —
The Indian government is currently analyzing the implications of the 26% reciprocal tariff imposed by US President Donald Trump on imports from India, calling the development a “mixed bag, not a setback” in early reactions reported by news agency PTI.

Also Read: Inside Trump’s Tariffs: China, India, EU Among Hardest Hit in New Trade Blitz

According to officials, the Centre does not see the new tariff measures as a full-blown crisis but is closely monitoring their impact on Indian exporters, trade flows, and global supply chains. Government sources suggested that the long-standing India-US trade dialogue could help in addressing critical sectors that are adversely affected.

“The situation is being studied in depth. While it does pose challenges to certain sectors like pharmaceuticals, auto components, and textiles, it is not entirely unexpected. We do not view this as a setback but as part of evolving trade dynamics,” a senior government official told PTI.

The US imposed a universal 10% tariff on all imports and a higher 26% rate specifically for India, as part of what Trump dubbed his “Liberation Day” tariff regime, targeting nations with high barriers on American goods. India has historically imposed duties on several categories of US imports including agricultural products, medical devices, and tech goods — a fact Trump has often criticized.

Also Read: Trump Spares Russia in Tariff Blitz Despite Harsh Rhetoric, Raises Eyebrows Globally

---

🇮🇳 India’s Position: “Engagement is Key”

Commerce Ministry sources said that India will rely on its trade diplomacy channels to convey concerns and seek clarity on product-level exclusions.

Also Read: Indian Markets Set for Sharp Drop: 10 Key Triggers From Trump Tariffs to Asian Sell-Off

“We believe mutual engagement will yield better outcomes than confrontation. The US remains one of our largest trade partners, and we will continue to work toward balanced, fair, and open trade,” the source added.

Officials also pointed to the ongoing India-US trade deal discussions, noting that some sensitive categories may be negotiated for partial waivers or delayed implementation.

---

🧾 Impact Assessment Underway

India’s Export Promotion Councils and industry bodies have been tasked with compiling lists of products and sectors likely to face pricing disadvantages, order cancellations, or supply chain disruptions.

Sectors under particular scrutiny include:

• Pharmaceutical APIs & formulations
• Automobile parts
• Textiles and garments
• Jewellery
• Processed food exports

---

📉 Markets React Calmly, For Now

The Sensex and Nifty 50 opened lower on Thursday amid global market jitters over the tariffs, but the Indian market showed relative stability after initial losses.

“The tariff shock is priced in to some extent. Focus will now be on how India mitigates impact through policy and diplomacy,” said Anupam Bose, Senior Economist, Narnolia Financial Advisors.

---

🛡️ India’s Possible Counter-Moves

While India has not indicated any immediate retaliatory tariffs, sources confirmed that the government is evaluating WTO-consistent safeguards and support measures for exporters.

Industry insiders are also calling for enhanced PLI (Production-Linked Incentive) support, tax credits, and shipping subsidies to maintain export competitiveness.

---

🗣️ Quick Quote:

“It’s a blow, but not a breakdown. India is far more resilient today than during the 2018-19 tariff rounds. This will be resolved politically and diplomatically.”
— Rajeev Kher, former Commerce Secretary

---

🏷️ Tags:
India-US trade, Trump tariffs, reciprocal tariffs, Indian exports, India trade policy, Commerce Ministry, global supply chains, trade war, Donald Trump, tariff impact, India economy 2025, export industry, foreign policy India