US revises reciprocal tariff on India to 26% after initial confusion

The United States on Friday revised the reciprocal tariff on Indian goods to 26% after an initial discrepancy over the rate.

Speaking at the White House Rose Garden on Wednesday, US President Donald Trump presented a chart outlining tariffs imposed by countries such as India, China, the UK, and the European Union. The chart detailed the corresponding reciprocal tariffs these nations would now face from the US.

According to the chart, India imposes a 52% tariff, factoring in "currency manipulation and trade barriers," and would be facing a 26% tariff from the US.

India examines impact of tariff hike

India has said that it is assessing the implications of the tariff increase while engaging with stakeholders, including industry representatives and exporters, to gauge their response.

"The Department of Commerce is carefully examining the implications of the various measures and announcements made by the President of the USA. Keeping in view the vision of 'Viksit Bharat,' the Department is actively consulting stakeholders, including Indian industry and exporters, to understand their assessment of the tariffs and evaluate the situation," the Commerce Ministry said in a statement.

India-US trade negotiations continue

India and the US are engaged in ongoing discussions to finalise a comprehensive bilateral trade agreement under the 'Mission 500' initiative, which aims to double bilateral trade to $500 billion by 2030. The trade talks focus on strengthening supply chain integration, enhancing investments, and facilitating technology transfers between the two nations.

"Discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement. These cover a wide range of issues of mutual interest, including deepening supply chain integration," the ministry added.