Trump Tariff Threat: India Inc. believes the real impact of the tariffs announced by the US President may be gauged only after a proper assessment.
Trump Tariff Threat: The Department of Commerce on Thursday said that it is carefully examining the implications of US President Donald Trump’s announcement of 27 per cent reciprocal tariffs on India. The Commerce Ministry, in a statement, said that it is engaged with all stakeholders to seek their feedback on the issue.
The commerce ministry said that it is also studying the opportunities that may arise due to this new development in the US trade policy. The baseline duty of 10 per cent will be effective from April 5 and the 27 per cent from April 9.
It also said that discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement (BTA).
India Inc Sees Limited Impact of US Tariffs
India Inc. believes the real impact of the tariffs announced by the US President may be gauged only after a proper assessment.
India has been placed somewhere in the middle of the tariff rates at 27 per cent in addition to 10 per cent baseline duties, which needs to be assessed for real impact”, said ASSOCHAM President Sanjay Nayar.
According to Vineet Agrawal, Co-founder, Jiraaf, the silver lining for India is that it remains on the lower end when compared with China, Vietnam, Bangladesh and Thailand.
“Regards to tariff on India, it is good to note that currenly Pharma and semi conductor remains exempt. However, the net GDP impact would be c. 0.4%-0.45% of GDP. It would be critical to understand impact on key commodities like oil and gold in an uncertain economic environment which could fuel domestic inflation. From a markets standpoint, the higher tariff on other countries could also possibly lead to some positive flows in India if the domestic indicators turn stronger,” Agrawal said.
Pranay Aggarwal, director & CEO, Stoxkart, said that heightened trade tensions may weaken the INR and deter FDI, though domestic stimulus could offset risks.
“The U.S. decision to impose reciprocal tariffs on India, Japan, and others may trigger short-term volatility in global markets, particularly in sectors like autos, steel, and agriculture. Indian equities could face pressure due to potential retaliatory measures, impacting export-driven sectors (e.g., pharmaceuticals, IT). The immediate tariff enforcement (excluding autos, effective April 3) suggests urgency, possibly disrupting supply chains,” he concluded.
With PTI inputs
