On April 2, 2025, US President Donald Trump has imposed a 26% “Discounted Reciprocal Tariff” on goods imported from India, followed by 34% on China, 20% on EU, and 24% on Japan. He called it as “half-reciprocal” response to India’s 52% tariff on American products.
Trump declared April 2 as “Liberation Day”, claiming his new tariffs will boost the US economy, bring back jobs, and reduce national debt.
Why Reciprocal Tariffs?
Standing in the White House Rose Garden, Trump announced:
“April 2, 2025, will be remembered as the day American industry was reborn! We’re taking back our economy, making America wealthy again!“
He argued that for decades, the US charged low tariffs (2.4% on bikes, 2.5% on cars), while other nations imposed much higher duties:
Trump accused other nations of unfair practices like:
- Currency manipulation
- Unfair subsidies
- High taxes
- Intellectual property theft
26% Reciprocal Tariff on India
Trump explained that the US will charge half of what other countries impose on American goods. Since India’s total tariffs (including hidden barriers) on US imports add up to 52%, the US is hitting back with 26%.
India vs US: Current Tariff Comparison:
| Category | India’s Tariff on US Goods | US Tariff on Indian Goods |
| All Products | 13.7% | 3.7% |
| Agricultural Products | 40.6% | 6.6% |
| Non-Agricultural Products | 11.6% | 3.4% |
US President Donald Trump imposes 26% "reciprocal tariffs" on India, followed by 34% on China, 20% on EU, and 24% on Japan pic.twitter.com/0uhLSCKSOV
— ANI (@ANI) April 2, 2025
Top Export Categories from India to US (2023)
| Category | Value (USD) | India’s Share in US Imports |
| Electronics | $11.1 billion | 14.3% |
| Gems & Jewellery | $9.9 billion | 12.8% |
| Pharma Products | $8.1 billion | 10.4% |
| Nuclear Reactors, Machinery | $6 billion | 7.8% |
| Refined Petroleum Products | $4.6 billion | 5.9% |
| Articles of Iron & Steel | $2.8 billion | 3.6% |
| Textiles | $2.6 billion | 3.4% |
| Organic Chemicals | $2.6 billion | 3.4% |
| Iron & Steel | $2.5 billion | 3.2% |
| Non-Industrial Manufactured Goods | $2.4 billion | 3.1% |
| Agricultural Products | $2.3 billion | 3.0% |
| Medical Instruments | $2 billion | 2.6% |
| Plastic & Plastic Articles | $1.9 billion | 2.4% |
| Furniture & Accessories | $1.8 billion | 2.3% |
| Total Exports to US | $78 billion | 100% |
Sectors at Risk:
- Auto, Pharma, Semiconductors – Already facing higher tariffs.
- Semiconductors – 85% of India’s exports go to the US, making them highly vulnerable.
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Bigger Changes in Future
Trump also plans a universal 10% baseline tariff for all countries, on top of these new rates. This could further impact global trade, including India’s exports.
A 25% tariff on foreign cars (announced earlier) will kick in on April 4 midnight ET.
Trump’s Vision: “Golden Age for America”
Trump promised his policies would:
✔ Bring back jobs & factories
✔ Generate trillions in revenue
✔ Cut taxes & reduce national debt
He called this move America’s “declaration of economic independence”, comparing it to historic moments in US history.
Conclusion
India’s export-heavy sectors could face major challenges if tariffs rise further. Businesses must adapt quickly to shifting trade policies.
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