'Not a setback': India reviewing impact of US's 26% tariffs
What's the story
India is looking into the economic effects of a 26% reciprocal tariff by the United States on its imports.
A senior government official confirmed a universal 10% tariff on all imports into the US will be levied from April 5, followed by an additional 16% from April 10.
"It is a mixed bag and not a setback for India," the official said, adding the commerce ministry is currently analyzing the newly announced tariffs and their prospective impact on India's economy.
Tariff rationale
US tariffs in response to India's high charges
US President Donald Trump announced these reciprocal tariffs in retaliation to India's exorbitant charges on American products.
He said, "India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine but I said you're a friend of mine but you're not treating us right."
"They charge us 52%. We charge them almost nothing...decades."
Trade negotiations
India and US negotiate bilateral trade pact
India is already negotiating a bilateral trade agreement with the US.
Both countries are working to finalize the first phase of this pact by fall (September-October) this year.
The official added that if a country addressed the concerns raised by the US, the Trump administration could consider reducing duties against that nation since there is a provision for it.
Tariff announcement
Trump declares April 2 as 'Liberation Day'
Trump announced the tariffs on dozens of nations, calling it "Liberation Day."
He said the day would be remembered as "the day American industry was reborn."
Holding up a chart showing a table titled "Reciprocal Tariffs," he compared tariffs imposed by other countries on the US versus Washington's.
Noticeably absent on the chart were Mexico and Canada.
According to the White House, those countries will remain under punitive tariffs aimed at bringing them in line with Trump's border security policy.