Tariff on India: A day after imposing it on India, America has also reduced the tariff. If we look at the White House documents, we can see that the tariff imposed on India has been reduced by 1 percent. Although this will not have much impact, now the effective tariff has become 26 percent.
US President Donald Trump has created a stir all over the world by starting a tariff war. He had also announced to impose 27 percent tariff on India but within 24 hours he also reduced it. According to the document released by the White House, the Trump administration has reduced the tariff imposed on India. The documents show that only India has been given this relief from the tariff imposed by the US on 60 countries of the world.
According to White House documents, the US has reduced the 27 percent tariff imposed on India to 26 percent. This tariff will come into effect from April 9 and will be imposed on all goods exported from India to the US. Earlier, while announcing the retaliatory duty, Donald Trump showed a chart showing that now India, China, UK and the European Union will have to pay duty on all their exports. The tariff on India has been reduced by 1 percent because the US has imposed only 50 percent of the tariff imposed by it on each country. If India collects 52 percent, it should have been imposed at the rate of 26 percent but it was imposed at 27 percent by mistake.
Tariff reform or relaxation
The chart released by the US shows that India collects 52 percent duty, which includes currency manipulation and trade barriers, and now the US will collect a concessional retaliatory duty of 26 percent from India. Earlier, the White House documents showed a 27 percent duty on India. It has been updated and reduced to 26 percent. However, looking at the documents, it seems that the US has not given this relaxation in the tariff, but has improved it. Anyway, industry experts say that a reduction of one percent will not have much impact.
US is the largest trading partner
The US was India’s largest trading partner from 2021-22 to 2023-24. The US accounts for about 18 per cent of India’s total textile exports, 6.22 per cent of imports and 10.73 per cent of bilateral trade. With the US, India’s trade surplus (difference between imports and exports) in textiles in 2023-24 was $35.32 billion. It was $27.7 billion in 2022-23, $32.85 billion in 2021-22, $22.73 billion in 2020-21 and $17.26 billion in 2019-20.
What makes the most exports
India’s major exports to the US in 2024 included pharmaceutical manufacturing and biological products ($8.1 billion), telecommunications equipment ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), gold and others included precious metal jewelry ($3.2 billion), cotton ready-made garments including accessories ($2.8 billion) and iron and steel products ($2.7 billion). Similarly, imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal, coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electrical machinery ($1.4 billion), aircraft, spacecraft and their parts ($1.3 billion) and gold ($1.3 billion).
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