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 is carefully examining the implications of the various measures / announcements made by the President of the USA. Keeping in view the vision of Viksit Bharat, the Department is engaged with all stakeholders, including Indian industry and exporters, taking feedback of their assessment of the tariffs and assessing the situation. The Department is also studying the opportunities that may arise due to this new development in the US trade policy.

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. These cover a wide range of issues of mutual interest including deepening supply chain integration. The ongoing talks are focused on enabling both nations to grow trade, investments and technology transfers. 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 21^st 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.

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Abhishek Dayal/Abhijith Narayanan