On expected lines, US President Donald Trump announced sweeping tariffs against over 180 countries on April 2, dealing a blow to market sentiment. Apart from country-specific tariffs, Trump also announced the imposition of a 10 per cent baseline tariff.
Trump announced a 26 per cent tariff on India, half the rate that India charges on US imports.
However, according to global financial firm Deloitte, Indian exporters face the prospect of a significantly higher ad valorem (according to value) duty of 27 per cent with effect from 9 April. Sectors such as textiles and apparel, pharmaceuticals and active pharmaceutical ingredients (APIs), Information technology and electronic components, and agricultural products are likely to be significantly affected.
“The US will impose a blanket 10 per cent additional ad valorem duty on all imports, except specified commodities, effective 5 April 2025. Furthermore, higher differentiated country-wise reciprocal tariffs on specified countries, including India, will come into effect from 9 April 2025. Accordingly, the additional ad valorem reciprocal tariff shall increase from 10 per cent to 27 per cent on imports from India,” said Deloitte.
