Business News
4 min read | Updated on April 03, 2025, 05:40 IST
SUMMARY
From 2021-22 to 2023-24, the United States was India’s largest trading partner, accounting for around 18% of India's goods exports, 10.73% in bilateral trade, and 6.22% in imports.
India had a trade surplus (the difference between imports and exports) with America of $35.32 billion in goods in 2023-24. | Image: X/@WhiteHouse
US President Donald Trump on Wednesday announced a 26% "discounted reciprocal tariff" on India, stating that he is being kind by charging "half of what they charge us." He also imposed 34% levies on China.
Addressing the media from the Rose Garden at the White House, Trump said, "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."
While announcing tariffs, the POTUS held up a chart showing details of tariffs imposed by India, China, the United Kingdom, and the European Union, along with the reciprocal tariffs these countries have to pay.
The chart claimed that India imposed 52% tariffs on the United States.
"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," the US President said, adding, "They charge us 52%. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China."
According to the White House, the reciprocal tariff will be effective from April 9. The baseline tariff of 10% will kick in from April 5.
Country | Tariffs Charged to US | Discounted Reciprocal Tariffs |
---|---|---|
China | 67% | 34% |
European Union | 39% | 20% |
Vietnam | 90% | 46% |
Taiwan | 64% | 32% |
Japan | 46% | 24% |
India | 52% | 26% |
South Korea | 50% | 25% |
Thailand | 72% | 36% |
Switzerland | 61% | 31% |
Indonesia | 64% | 32% |
Malaysia | 47% | 24% |
Cambodia | 97% | 49% |
United Kingdom | 10% | 10% |
South Africa | 60% | 30% |
Brazil | 10% | 10% |
Bangladesh | 74% | 37% |
Singapore | 10% | 10% |
Israel | 33% | 17% |
Philippines | 34% | 17% |
Chile | 10% | 10% |
Australia | 10% | 10% |
Pakistan | 58% | 29% |
Turkey | 10% | 10% |
Sri Lanka | 88% | 44% |
Colombia | 10% | 10% |
Peru | 10% | 10% |
Nicaragua | 36% | 18% |
Norway | 30% | 15% |
Costa Rica | 17% | 10% |
Jordan | 40% | 20% |
Dominican Republic | 10% | 10% |
United Arab Emirates | 10% | 10% |
New Zealand | 20% | 10% |
Argentina | 10% | 10% |
Ecuador | 12% | 10% |
Guatemala | 10% | 10% |
Honduras | 10% | 10% |
Madagascar | 93% | 47% |
Myanmar (Burma) | 88% | 44% |
Tunisia | 55% | 28% |
Kazakhstan | 74% | 37% |
Serbia | 74% | 37% |
Egypt | 10% | 10% |
Saudi Arabia | 10% | 10% |
El Salvador | 10% | 10% |
Côte d'Ivoire | 41% | 21% |
Laos | 95% | 48% |
Botswana | 74% | 37% |
Trinidad and Tobago | 12% | 10% |
Morocco | 10% | 10% |
From 2021-22 to 2023-24, the United States was India’s largest trading partner, accounting for around 18% of India's goods exports, 10.73% in bilateral trade, and 6.22% in imports.
India had a trade surplus (the difference between imports and exports) with America of $35.32 billion in goods in 2023-24.
India’s main exports to the US were drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion) and gold and other jewellery ($3.2 billion), among others.
Imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal and coke ($3.4 billion), diamonds ($2.6 billion) and electric machinery ($1.4 billion).
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