How can India counter Trump's tariffs?

On April 2, 2025, U.S. President Donald Trump announced a new set of tariffs against countries that, according to him, charged high tariffs and imposed barriers that made products made in the USA more expensive.

These tariffs are essential to Trump’s plan to reduce trade deficits and increase domestic manufacturing.

The “baseline” tariff of 10% on imports from all countries came into effect on April 5, 2025. A new set of tariffs would come into effect on April 9.

The Trump administration imposed a 26% tariff on imports from India, which is slightly higher than the 20% levy for the European Union, the 24% for Japan and the 25% for South Korea. However, this is lower than the levies on imports from China and other regional manufacturing rivals like Vietnam.

Different countries have responded differently to the tariffs. China has announced retaliatory tariffs, the EU offered a ‘zero-for-zero’ deal to the US, while India has gone for a cautious approach. The Department of Commerce said it is “carefully examining” the implications of the tariff announcements.

It is also engaging with exporters and other stakeholders and taking feedback on their assessment of the tariffs, and assessing the situation.

India and the US are in talks to determine the terms for a mutually beneficial, multi-sectoral Bilateral Trade Agreement (BTA).

Guest: Dr. Surendar Singh, Associate Professor, Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat.

Host: Nivedita V

Edited by Sharmada Venkatasubramanian