Tariff Tug-of-War: US Imposes 27% Duties on Indian Imports

The US has announced an additional 27% import duty on Indian goods, citing high Indian tariffs on American products. The Trump administration aims to reduce the trade deficit and boost domestic manufacturing. The move could impact Indian exports but India remains better positioned than competitors facing higher levies.

The United States has announced a new 27% import duty on Indian goods, responding to what it describes as New Delhi's high tariffs on American products. This measure, part of the Trump administration's strategy to reduce the trade deficit and revitalize US manufacturing, could influence the dynamics of international trade.

Although the increased tariffs are likely to affect India's exports to the US, experts remain optimistic about India's competitive stance compared to other countries, such as China, Vietnam, and Thailand, facing even steeper tariffs. The reciprocal tariffs are part of a broader move affecting around 60 nations.

The Federation of Indian Export Organisations acknowledged the challenges posed by the duties but noted potential export diversions that may mitigate negative impacts. Ongoing US-India trade negotiations aim to finalize a bilateral agreement by this fall, intending to expand bilateral trade significantly by 2030.

(With inputs from agencies.)