US President Trump announces 26 per cent 'discounted reciprocal tariff' on India

The key concerns around price increase for the generic medicines in the US, drug shortages, rationalization from low-margin products, and supply chain disruption are temporarily alleviated, for now. However, pharmaceutical products may become subject to duties under future actions pursuant to the Trade Expansion Act of 1962

It said

For Donald Trump, it's America First, and for Modi ji, it's India First. We will analyse it first, then assess its impact and see how to deal with it."

Talking to reporters in the national capital, New Delhi, Union Minister of State for Finance Chaudhary said

It will be extremely detrimental to our trade. The Indian government should raise this issue with the US government immediately,

Shukla said

Our country and its taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore."

The US President said

Mallikarjun Khargecongress president

It doesn't seem right to give a byte on this issue. Our party will release a detailed statement on it,

Kharge said outside Parliament today

Ajay SrivastavagTRI Founder

Overall, the new policy imposes heavier duties on imports in order to rebalance trade, promote US manufacturing, and reduce reliance on foreign supply chains. The actual tariff a country faces depends on what it is exporting and how its trade practices align with US economic and national security interests,

Srivastava noted

The semiconductor space, while still dominated by technologically advanced players like Taiwan, also offers potential for India to capture parts of the value chain such as packaging, testing, and lower-end chip manufacturing,

he said

Goods from India face a 25 per cent tariff on steel, aluminium, and auto-related goods, and no tariffs on pharmaceuticals, semiconductors, copper, or energy products. For the remaining products, India is subject to a reciprocal tariff of 27 per cent,

he said

One of the most prominent areas of opportunity lies in textiles and garments. The high tariffs on Chinese and Bangladeshi exports create room for Indian textile manufacturers to gain market share, attract relocated production, and increase exports to the U.S."

Srivastava said

When two leaders (Prime Minister Narendra Modi and President Donald Trump) have agreed to sign a BTA by the fall of 2025, aiming to take bilateral trade from $200 billion to $500 billion in five years, when a BTA framework is already on a fast-track mechanism and when bilateral engagements are well entrenched, any immediate reaction is unwarranted,

HT reported on Thursday quoting an unnamed government official

With 27% effective reciprocal tariff imposed on India, practically, India has over 54-79% advantage China. Similarly, we have significant advantage over Vietnam and Bangladesh for textiles exports. These are some extremely positive factors of the Trump’s tariff move,

one of them said

India’s reaction to this development will be measured, calibrated and professional unlike some countries that threaten American imports,

a second government official said

This is expected to have a significant impact on US inflation and global trade dynamics. Exporters from India are likely to face relatively less trouble, as amongst major EMs in Asia, tariffs on US imports from India is the lowest (26%+ 10% baseline) barring Philippines (17%+10% baseline),

said Sonal Badhan, Economics Specialist at Bank of Baroda

Pankaj Chaudharyfinance

On the one hand, the relatively lower tariffs on Indian goods compared to those from China, Thailand, and Vietnam create a favourable arbitrage opportunity for Indian exports. However, on the other hand, Indian manufacturers may face intensified competition in other markets, as countries that traditionally focus on the US market may redirect their efforts to other countries to fill the potential void,

said Chaudhary

Tariffs unveiled by President Trump last night would bring a major realignment in global trade and manufacturing value chains. India has been placed somewhere in the middle of the tariff rates at 26 per cent in addition to 10% baseline duties, which needs to be assessed for real impact,

said ASSOCHAM President Sanjay Nayar

Amidst all these, inward dependent economies like India should focus on bank liquidity so that they can lend freely to domestic retail borrowers and small business owners, to keep domestic consumption intact,

said Debopam Chaudhuri, Chief Economist at Piramal Group

The Prime Minister just left and is a great friend of mine, but you are not treating us right."

President Trump said, referring to PM Modi's recent visit

India imposes their own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India,

the fact sheet said

Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and US healthcare by ensuring a steady supply of affordable medicines,

Jain added

The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security,

Jain said in a statement