Trump imposes 26% 'discounted reciprocal tariff' on India; check list of countries

SUMMARY

From 2021-22 to 2023-24, the United States was India’s largest trading partner, accounting for around 18% of India's goods exports, 10.73% in bilateral trade, and 6.22% in imports.

India had a trade surplus (the difference between imports and exports) with America of $35.32 billion in goods in 2023-24.

US President Donald Trump on Wednesday announced a 26% "discounted reciprocal tariff" on India, stating that he is being kind by charging "half of what they charge us." He also imposed 34% levies on China.

Addressing the media from the Rose Garden at the White House, Trump said, "This is Liberation Day, a long-awaited moment. 2nd April 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again. We are going to make it wealthy, good, and wealthy."

While announcing tariffs, the POTUS held up a chart showing details of tariffs imposed by India, China, the United Kingdom, and the European Union, along with the reciprocal tariffs these countries have to pay.

The chart claimed that India imposed 52% tariffs on the United States.

"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," the US President said, adding, "They charge us 52%. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China."

The highest reciprocal tariff is imposed on countries such as Cambodia (49%) and Madagascar (47%), while the lowest is on Brazil and the United Kingdom at 10% each.

According to the White House, the reciprocal tariff will be effective from April 9. The baseline tariff of 10% will kick in from April 5.

List of countries facing reciprocal tariffs

Country	Tariffs Charged to US	Discounted Reciprocal Tariffs
China	67%	34%
European Union	39%	20%
Vietnam	90%	46%
Taiwan	64%	32%
Japan	46%	24%
India	52%	26%
South Korea	50%	25%
Thailand	72%	36%
Switzerland	61%	31%
Indonesia	64%	32%
Malaysia	47%	24%
Cambodia	97%	49%
United Kingdom	10%	10%
South Africa	60%	30%
Brazil	10%	10%
Bangladesh	74%	37%
Singapore	10%	10%
Israel	33%	17%
Philippines	34%	17%
Chile	10%	10%
Australia	10%	10%
Pakistan	58%	29%
Turkey	10%	10%
Sri Lanka	88%	44%
Colombia	10%	10%
Peru	10%	10%
Nicaragua	36%	18%
Norway	30%	15%
Costa Rica	17%	10%
Jordan	40%	20%
Dominican Republic	10%	10%
United Arab Emirates	10%	10%
New Zealand	20%	10%
Argentina	10%	10%
Ecuador	12%	10%
Guatemala	10%	10%
Honduras	10%	10%
Madagascar	93%	47%
Myanmar (Burma)	88%	44%
Tunisia	55%	28%
Kazakhstan	74%	37%
Serbia	74%	37%
Egypt	10%	10%
Saudi Arabia	10%	10%
El Salvador	10%	10%
Côte d'Ivoire	41%	21%
Laos	95%	48%
Botswana	74%	37%
Trinidad and Tobago	12%	10%
Morocco	10%	10%

Here's what we need to know about the India-US trade relationship

From 2021-22 to 2023-24, the United States was India’s largest trading partner, accounting for around 18% of India's goods exports, 10.73% in bilateral trade, and 6.22% in imports.

India’s main exports to the US were drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion) and gold and other jewellery ($3.2 billion), among others.

Imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal and coke ($3.4 billion), diamonds ($2.6 billion) and electric machinery ($1.4 billion).

India examines impact of tariff hike

India has said that it is assessing the implications of the tariff increase while engaging with stakeholders, including industry representatives and exporters, to gauge their response.

"The Department of Commerce is carefully examining the implications of the various measures and announcements made by the President of the USA. Keeping in view the vision of 'Viksit Bharat,' the Department is actively consulting stakeholders, including Indian industry and exporters, to understand their assessment of the tariffs and evaluate the situation," the Commerce Ministry said in a statement.

India-US trade negotiations continue

India and the US are engaged in ongoing discussions to finalise a comprehensive bilateral trade agreement under the 'Mission 500' initiative, which aims to double bilateral trade to $500 billion by 2030. The trade talks focus on strengthening supply chain integration, enhancing investments, and facilitating technology transfers between the two nations.

"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 ministry added.