NEW DELHI: As April 2 approaches, India faces uncertainty over US President Donald Trump’s plan to impose reciprocal tariffs on India and 25 other countries. These tariffs could impact sectors like agriculture, which employs about 700 million people and is crucial for food security. Currently, there is a lack of clarity regarding how the US will implement these reciprocal tariffs especially on agriculture and allied sectors.“We still do not have clarity on whether the reciprocal tariffs will be applied sector-wise, as a single reciprocal tariff for each country, or if there will be separate tariffs for industrial and agricultural products,” stated a senior official from the Ministry of Commerce.Designed to protect small farmers and compliant with WTO rules, India’s tariffs include significant rates on key agricultural products like 45% on soybean and 100% on wheat.“India’s tariffs adhere to WTO regulations,” explained Abhijit Das, former Head and Professor at the Centre for WTO Studies at the Indian Institute of Foreign Trade. “The US is attempting to achieve what it couldn’t through WTO negotiations by threatening unilateral tariffs,” he added.India’s concern stem out from the fact that it is the largest trade partner to the US not vice versa. India exports 18% of its total export to the US whereas the share of US trade in India accounts for only about 2.31%. During 2023-24, India enjoyed a trade surplus of $35.31 billion with the US.Experts argue that the trade deficit is misleading when considering the share and value of trade. The US exports high-value products to India, including mineral fuels and oils, nuclear reactors and boilers, and electrical machinery.
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