Trump Tariff Menace: Govt fastidiously inspecting implications of US reciprocal tariffs

Trump Tariff Menace: The Division of Commerce on Thursday mentioned that it’s fastidiously inspecting the implications of US President Donald Trump’s announcement of 27 per cent reciprocal tariffs on India. The Commerce Ministry, in a press release, mentioned that it’s engaged with all stakeholders to hunt their suggestions on the problem.

The commerce ministry mentioned that additionally it is learning the alternatives that will come up because of this new growth within the US commerce coverage. The baseline responsibility of 10 per cent might be efficient from April 5 and the 27 per cent from April 9.

It additionally mentioned that discussions are ongoing between Indian and US commerce groups for the expeditious conclusion of a mutually useful, multi-sectoral Bilateral Commerce Settlement (BTA).

India Inc Sees Restricted Affect of US Tariffs

India Inc. believes the true affect of the tariffs introduced by the US President could also be gauged solely after a correct evaluation.

India has been positioned someplace in the course of the tariff charges at 27 per cent along with 10 per cent baseline duties, which must be assessed for actual affect”, mentioned ASSOCHAM President Sanjay Nayar.

In line with Vineet Agrawal, Co-founder, Jiraaf, the silver lining for India is that it stays on the decrease finish when put next with China, Vietnam, Bangladesh and Thailand. 

“Regards to tariff on India, it’s good to notice that currenly Pharma and semi conductor stays exempt. Nevertheless, the web GDP affect could be c. 0.4%-0.45% of GDP. It might be vital to know affect on key commodities like oil and gold in an unsure financial surroundings which might gas home inflation. From a markets standpoint, the upper tariff on different international locations might additionally presumably result in some optimistic flows in India if the home indicators flip stronger,” Agrawal mentioned.

Pranay Aggarwal, director & CEO, Stoxkart, mentioned that heightened commerce tensions might weaken the INR and deter FDI, although home stimulus might offset dangers.

“The U.S. choice to impose reciprocal tariffs on India, Japan, and others might set off short-term volatility in world markets, notably in sectors like autos, metal, and agriculture. Indian equities might face stress because of potential retaliatory measures, impacting export-driven sectors (e.g., prescribed drugs, IT). The rapid tariff enforcement (excluding autos, efficient April 3) suggests urgency, presumably disrupting provide chains,” he concluded.

With PTI inputs