‘Engaged with industry, exporters’: India examining US tariffs, says talks on $500 bn trade target with Washington ongoing

India is closely examining the implications of the 27 per cent reciprocal tariffs announced by the United States, the Ministry of Commerce and Industry said on Thursday, while reaffirming its commitment to ongoing trade negotiations with Washington under the joint ‘Mission 500’ initiative.

In a detailed statement following US President Donald Trump’s executive order, the ministry said, “The US President issued an Executive Order on Reciprocal Tariffs imposing additional ad-valorem duties ranging from 10% to 50% on imports from all trading partners. The baseline duty of 10% will be effective from April 05, 2025 and the remaining country-specific additional ad-valorem duty will be effective from April 09, 2025. The additional duty on India as per the Annex I of the Executive Order is 27%.”

The Department of Commerce said it was “carefully examining the implications” of the announcement and was “engaged with all stakeholders, including Indian industry and exporters, taking feedback of their assessment of the tariffs and assessing the situation.”

It also noted that the development could open new doors. “The Department is also studying the opportunities that may arise due to this new development in the US trade policy,” it said.

Referring to recent diplomatic discussions, the statement added: “The Hon Prime Minister of India, Shri Narendra Modi, and the Hon President of USA, Mr. Donald Trump have announced on 13 February 2025 ‘Mission 500’ – aiming to more than double the bilateral trade to US $500 Billion by 2030. Accordingly, discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement.”

The government said these talks cover a wide range of mutual interests, including supply chain integration and investments. “We remain in touch with the Trump Administration on these issues and expect to take them forward in the coming days.”

“India values its Comprehensive Global Strategic Partnership with the United States and is committed to working closely with the US to implement the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) for the 21st century to ensure that our trade ties remain a pillar of mutual prosperity and drive transformative change for the benefit of the people of India and the US,” the statement added.

President Trump has announced reciprocal tariffs targeting over 60 countries, including India. He cited India’s high tariffs — 52 per cent by some US estimates — as the reason for levying a 27 per cent duty on Indian exports. Despite the move, Indian officials and trade bodies said the country is better placed than many of its competitors like Vietnam or China.