Trump’s Order Hikes Duty on Indian Goods by 27%, India Engages with US on Tariff Issue

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New Delhi— The Indian government is closely examining the implications of a new executive order issued by US President Donald Trump, which imposes an additional 27 per cent duty on Indian goods entering the US, the Ministry of Commerce and Industry said on Thursday.

The executive order, part of a broader reciprocal tariff initiative, introduces ad valorem duties ranging from 10 per cent to 50 per cent on imports from all trading partners. The baseline 10 per cent duty will come into effect on April 5, 2025, while country-specific additional tariffs—including the 27 per cent rate for India—will take effect from April 9, 2025, the ministry stated.

In an official statement, the Department of Commerce said it is “carefully examining the implications” of the US announcement and its potential impact on Indian exports.

“In line with the vision of Viksit Bharat, the Department is actively engaging with stakeholders—including exporters and industry bodies—to gather feedback and assess the situation. It is also exploring potential opportunities that may emerge from this shift in US trade policy,” the statement noted.

The announcement comes just weeks after Prime Minister Narendra Modi and President Trump unveiled the “Mission 500” initiative on February 13, aimed at more than doubling bilateral trade to $500 billion by 2030.

Ongoing discussions between Indian and US trade teams are focused on finalizing a comprehensive, multi-sectoral Bilateral Trade Agreement, which covers a broad spectrum of issues including supply chain integration, investments, and technology cooperation, the ministry said.

“The ongoing talks aim to foster growth in trade, investment, and technology transfers between the two countries. We remain in close contact with the Trump administration and are committed to moving these discussions forward in the coming days,” the statement added.

Reaffirming its commitment to the India-US partnership, the ministry emphasized India’s dedication to the Comprehensive Global Strategic Partnership with the United States.

“India is fully committed to implementing the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) initiative. We view our trade relationship as a key pillar of mutual prosperity and a driver of transformative change that benefits the people of both nations,” it concluded. (Source: IANS)