19 hours ago
Last Updated:April 03, 2025, 08:58 IST
Donald Trump's Tariffs On India: Pharmaceutical exports are exempt from the reciprocal tariff for now which will come as a relief for Indian companies. Here’s a look at how Donald Trump’s tariffs will impact India
US President Donald Trump (Image Credit: Reuters)
US President Donald Trump announced a 26% reciprocal tariff on goods imported from India. On what he dubbed as ‘Liberation Day’, Donald Trump said that the United States “has been looted, pillaged, raped, plundered" by foreign nations as he displayed a chart illustrating proposed reciprocal tariffs.
He said, “April 2nd, 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."
As per the board held up by Donald Trump, the tariffs charged by India to the US are 52% and the ‘discounted’ reciprocal tariffs by the US will be 26%.
On India, Donald Trump said, “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. 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."
Here’s a look at how Donald Trump’s tariffs will impact India
Which Sectors Are Exempt From Trump’s Reciprocal Tariffs?
Pharmaceutical exports are exempt from the reciprocal tariff for now which will come as a relief for Indian companies like Sun Pharma (33% of revenue from US), Dr Reddy’s Laboratories (48.5%) and Aurobindo Pharma (48.3%). Other sectors exempt from the latest tariff announcements are steel, copper, bullion, energy and other certain minerals.
Which Sectors Will Be Impacted By Trump’s Reciprocal Tariffs
The reciprocal tariffs will affect the electronics sector in India which relied on the US for 32% of its exports in the financial year ended March 2024.
India’s textiles and apparels sector may become more competitive compared to China and Vietnam as reciprocal tariffs on China increased the duties by 34% and by 46% for Vietnam. Truck exporters are likely to take a hit from the increased tariffs in the US.
Although, there may be no direct impact of the tariffs on IT services.
Location :Washington D.C., United States of America (USA)
First Published:April 03, 2025, 08:29 IST
News world Donald Trump’s Reciprocal Tariffs On India: Impact, Sectors To Be Worst Hit And More
