New Delhi— The Indian government is taking a close look at a new executive order from US President Donald Trump. This order raises tariffs on Indian goods by an extra 27 percent, which will start on April 9, 2025. The Ministry of Commerce and Industry has expressed concern over how this will affect Indian exports.
This executive order is part of a wider reciprocal tariff initiative. It introduces ad valorem duties on imports from various countries. The baseline duty of 10 percent kicks in on April 5, 2025, while the specific additional tariffs for each country will begin shortly after.
The Department of Commerce stated they are “carefully examining the implications” of these changes. They are gathering feedback from exporters and industry groups to understand the potential impact better. This reflects India’s proactive approach as they look for opportunities amid the trade policy shift.
Just recently, on February 13, Prime Minister Narendra Modi and President Trump launched the “Mission 500” initiative. This aims to boost bilateral trade to $500 billion by 2030. Amid this backdrop, discussions are ongoing between Indian and US trade teams. Their goal is to finalize a comprehensive Bilateral Trade Agreement that deals with various issues like supply chain integration, investment, and tech cooperation.
Experts warn that these increased tariffs could lead to higher prices for consumers and impact the overall trade balance. According to recent reports from the World Bank, the global economy may face repercussions if trade tensions continue to escalate. This sentiment is shared by industry leaders who advocate for open trade to foster economic growth.
On social media, reactions to the tariff increase have been mixed. Some users express concerns about how it will affect everyday commodities, while others see it as a chance for Indian industries to become more competitive and innovate. The conversation around this topic highlights the delicate balance between protecting national interests and fostering international trade relationships.
India remains committed to its partnership with the US, emphasizing the importance of the Comprehensive Global Strategic Partnership. The ministry affirmed that the trade relationship is vital for prosperity in both nations. It is seen as a driver of significant change that benefits the people in both countries.
For more detailed insight on global trade policies, you can check reports from the World Bank.
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