Washington, D.C., March 5, 2025 – U.S. President Donald Trump has announced the imposition of reciprocal tariffs starting April 2, warning that countries imposing high tariffs on U.S. goods will face equal tariffs in return. This gives India less than four weeks to adjust its customs and duties on U.S. imports or risk a similar tariff hike on Indian exports to America.
In response, New Delhi has set up a high-level committee under the Ministry of Commerce to assess the impact of these tariffs. The committee includes officials from key ministries such as agriculture, food processing, heavy industry, and electronics & IT.
The tariff decision comes just weeks after Prime Minister Narendra Modi and Trump met in Washington, where they agreed to negotiate a trade agreement by October 2025. Both leaders had also announced ‘Mission 500,’ aiming to expand bilateral trade to $500 billion by 2030. However, Trump’s latest move threatens to complicate these negotiations.
Speaking before Congress, Trump criticized India’s high tariffs on American products, stating that India imposes tariffs as high as 100% and that the system has never been fair to the U.S. He declared that other countries have used tariffs against the U.S. for decades, and now it’s time for America to respond. He further warned that if nations use non-monetary barriers to restrict American goods, the U.S. will impose similar restrictions.
The reciprocal tariff policy will affect major U.S. trading partners, including Canada, Mexico, China, the European Union, and India. Trump’s administration argues that American businesses have long suffered due to unfair global trade practices. While similar measures were considered in his first term, this time, the White House appears determined to enforce them.
With the April 2 deadline looming, India must decide whether to adjust its tariffs or face potential economic repercussions. Experts predict intense trade negotiations in the coming weeks, as both nations seek a balanced agreement amid growing tensions.
