As U.S. President Donald Trump prepares to announce reciprocal tariffs on April 2, Indian exporters are bracing for potential disruptions across key industries. The tariffs, aimed at addressing the U.S.’s trade deficit, could significantly impact sectors such as agriculture, pharmaceuticals, textiles, and automobiles.
India, the U.S.’s largest trading partner from 2021-22 to 2023-24, accounts for 18% of America’s total goods exports and 10.73% of bilateral trade. The proposed tariffs are expected to target areas where tariff disparities are highest, including shrimp exports, which face a 27.83% tariff differential, and dairy products, with a 38.23% hike. Gems and jewelry, pharmaceuticals, and textiles are also likely to see increased costs, reducing competitiveness in the U.S. market.
The announcement comes amid ongoing negotiations for a bilateral trade agreement between the two nations. India’s Commerce Minister Piyush Goyal is in Washington to discuss exemptions and mitigate the impact of these tariffs.
With the deadline approaching, Indian businesses are closely monitoring developments and preparing strategies to navigate the challenges posed by these tariffs.
