The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, APRIL 3, 2025
In a marginal yet symbolic move, the United States has revised the additional import tariff on Indian goods from 27 per cent to 26 per cent, as per a latest update from the White House. The revised duty will be effective from April 9, 2025.
The announcement comes as part of a broader US policy to impose reciprocal tariffs on nearly 60 countries, including India, aimed at addressing America’s trade deficit and promoting domestic manufacturing. President Donald Trump, while unveiling the new tariff measures on Wednesday, presented a chart showing the revised duties on major trading partners such as India, China, the United Kingdom, and the European Union.
The chart highlighted that Indian exports face an average effective barrier of 52 per cent in the US, factoring in duties, non-tariff measures, and currency manipulation. In response, the US has decided to impose a 26 per cent reciprocal tariff on Indian goods — one per cent lower than the initial 27 per cent indicated in earlier White House documentation.
Industry observers have noted that the marginal one per cent reduction may have limited practical impact on the trade flow but reflects Washington’s willingness to recalibrate its stance.
The United States continues to be India’s most significant trading partner, accounting for approximately 18 per cent of India’s total goods exports and 10.73 per cent of bilateral trade. Between 2021-22 and 2023-24, India maintained a steady trade surplus with the US, which stood at USD 35.32 billion in 2023-24 — up from USD 27.7 billion in 2022-23 and USD 32.85 billion in 2021-22.
India’s major exports to the US in 2024 included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), and jewellery (USD 3.2 billion). Other key exports were cotton garments (USD 2.8 billion) and iron and steel products (USD 2.7 billion).
On the import side, India’s key purchases from the US comprised crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal and coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), and high-end machinery and aerospace components.
According to officials, the 26 per cent tariff is an additional duty imposed over and above existing levies on Indian goods entering the US market.
