What are the implications of Trump’s threat to ‘mirror’ India’s tariffs?

The United States is India’s biggest trading partner. In 2023, the U.S.-India bilateral trade in goods and services stood at $190.08 billion -- $123.89 billion in goods and $66.19 billion in services trade. 17.7% of India’s exports are to the US.

In 2024, India enjoyed a goods trade surplus to the tune of $45.7 billion. American exports into India also face a higher rate of tariffs than India’s exports to the US. Now President Donald Trump has said that the US will mirror Indian tariffs from April 2. This means tariffs on Indian goods will increase substantially.

If this does happen, how will it affect Indian industry? Should India get into a trade war or pre-emptively lower its tariffs on US goods? More critically, what are the implications of reciprocal tariffs for the World Trade Organisation (WTO) – is the US getting out of WTO?

Guest: economist Neeraj Kaushal, Professor at the School of Social Work, Columbia University.

Host: G. Sampath, Social Affairs Editor, The Hindu.

Edited by Sharmada Venkatasubramanian.

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