US President Donald Trump has imposed 26% reciprocal tariffs on India, despite often referring to the country as a “friend”. These new tariffs could hit Indian exporters hard, leaving many wondering how the Modi government plans to respond.

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India’s response: Assessing the impact

The Indian government on Thursday (3 April) announced that it is “carefully examining the implications” of Trump’s decision.

Also read: Trump’s reciprocal tariffs hit ‘tariff king’ India: Could they cost PM Modi his next term?

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The Ministry of Commerce and Industry said that it is engaging with Indian industry leaders and exporters to assess the impact of the tariffs and gather feedback.

In a press release, the ministry said, “The Department is also studying the opportunities that may arise due to this new development in the US trade policy.”

India and US trade talks continue

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Despite the tariffs, trade discussions between India and the US are still ongoing. The commerce ministry referenced the ‘Mission 500’ initiative, which was announced by Prime Minister Narendra Modi and Trump on 13 February. This initiative aims to more than double bilateral trade to $500 billion by 2030.

Also read: Not quite shoot-to-kill: Trump’s cowboy bluster on tariffs hides a pragmatic subtext

The ministry stressed that Indian and US trade teams are in talks to finalise a Bilateral Trade Agreement covering multiple sectors.

“These cover a wide range of issues of mutual interest, including deepening supply chain integration,” the ministry said.

“The ongoing talks are focused on enabling both nations to grow trade, investments, and technology transfers. We remain in touch with the Trump administration on these issues and expect to take them forward in the coming days,” it added.

India reaffirmed its commitment to its Comprehensive Global Strategic Partnership with the US, adding that it remains focused on ensuring trade ties “remain a pillar of mutual prosperity”.

Also read: Trump’s ‘kind reciprocal’ tariffs explained: See how much India, China, Japan, and others will pay. FULL LIST

The commerce ministry also said that it is dedicated to the India-US ‘Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology’ (COMPACT) initiative. This programme aims to strengthen economic and strategic ties between both nations in the 21st century.

(With inputs from agencies)