Trump tariffs 'not a setback' for India: Official calls it a mixed bag as US prez imposes 26 per cent tariffs on India

Trump reciprocal tariffs India reaction: In its first response to Donald Trump's reciprocal tariffs, India has termed it not a "setback" but a "mixed bag".

The US president announced a 26 per cent tariff on India on what he called 'Liberation Day' on Wednesday (Apr 3), calling Prime Minister Narendra Modi a "great friend" who didn't treat the US right.

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Speaking to the Indian news agency PTI, an official said the commerce ministry is analysing the impact of the reciprocal tariffs or import duties imposed by the US.

"It is a mixed bag and not a setback for India...The ministry is analysing the impact of the announced tariffs," the official said.

He also said there is a provision that if India would address the concerns of the US, the Trump administration can consider reducing the duties.

As per reports, the universal 10 per cent tariffs will come into effect on all imports into the US from April 5 and the remaining 16 per cent from April 10.

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Trump's tariff announcement on India

Holding up a chart that showed the tariffs that all countries charge, along with the reciprocal tariffs that these countries will now have to pay, Trump termed the US tariffs as 'discounted'.

"This is Liberation Day, a long-awaited moment. 2nd April 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again. We are going to make it wealthy, good, and wealthy," Trump said in remarks from the Rose Garden at the White House.

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The chart indicated that India charged 52 per cent tariffs, including currency manipulation and trade barriers, and America would now charge India a discounted reciprocal tariff of 26 per cent.

"India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine, but I said, you're a friend of mine, but you're not treating us right. They charge us 52 per cent...," he said.

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Bilateral trade agreement between India and US

India is already negotiating a bilateral trade agreement with the US. The two countries are aiming to finalise the first phase of the pact by fall (Sep-Oct) of this year.

On Tuesday (Apr 1), India agreed to the Terms of Reference for the Bilateral Trade Agreement with the US following an intervention from the Prime Minister’s Office (PMO).

As per reports, both sides are now ready for formal negotiations where India is expected to lower tariffs on American goods in exchange for US concessions.

Read more | Trump announces 26% 'discounted' tariffs on India, says 'PM Modi is a friend, but he hasn't been treating us right'

(With inputs from agencies)