India vs US Current Tariff Comparison
| Category | India’s Tariffs on US Imports | US Tariffs on Indian Imports |
|---|---|---|
| All products | 13.7% | 3.7% |
| Agricultural products | 40.6% | 6.6% |
| Non-agricultural products | 11.6% | 3.4% |
Note: All figures represent Simple Average MFN (Most Favored Nation) Applied Rates; Source: WTO IDB, Trade Data MonitorTrump has also announced his intention to establish a universal baseline tariff of 10% that will apply to all countries, in addition to the tariffs he has announced.
Trump, who referred to April 2 as “Liberation Day”, made the announcement from the Rose Garden of the White House in an event attended by steel and auto workers.
India’s largest trading partner is the US, with metal ores and gemstones, electrical equipment, pharmaceuticals and textiles constituting the bulk of its exports. While sectors such as semiconductors, furniture and rubber represent a smaller share of India’s US-bound exports, they are heavily reliant on US demand, with semiconductors being particularly vulnerable as 85% of exports in this sector go to the US market.
Trump’s tariffs on sectors such as automobiles, pharmaceuticals and semiconductor chips, along with potential non-tariff barriers, pose significant risks to these industries.
Breaking Down India’s Exports to the US
| Export Category | Value (USD) | India’s Share in US Exports |
|---|---|---|
| Electronics | $11.1 billion | 14.3% |
| Gems & Jewellery | $9.9 billion | 12.8% |
| Pharma Products | $8.1 billion | 10.4% |
| Nuclear Reactors, Parts, Machinery etc. | $6 billion | 7.8% |
| Refined Petroleum Products | $4.6 billion | 5.9% |
| Articles of Iron and Steel | $2.8 billion | 3.6% |
| Textiles | $2.6 billion | 3.4% |
| Organic Chemicals | $2.6 billion | 3.4% |
| Iron and Steel | $2.5 billion | 3.2% |
| Non-Industrial Manufactured Goods | $2.4 billion | 3.1% |
| Agricultural Products | $2.3 billion | 3% |
| Organic Chemicals | $2.1 billion | 2.7% |
| Medical Instruments | $2 billion | 2.6% |
| Plastic and Plastic Articles | $1.9 billion | 2.4% |
| Furniture and Accessories | $1.8 billion | 2.3% |
| Total Exports to US | $78 billion |
Trump, during his speech, promised a “golden age” for America with the return of jobs and factories and claimed that his tariff policies would generate “trillions and trillions of dollars” to reduce taxes and pay down the national debt.Trump called the announcement America’s “declaration of economic independence” and described it as one of the most important moments in American history.
Justifying the reciprocal tariffs, Trump said many countries have targeted the US with “non-monetary barriers”, such as currency manipulation, subsidies, exorbitant taxes, and theft of intellectual property.
Trump said a 25% tariff on foreign-made automobiles, announced last week, will come into effect at midnight ET on April 2 (9.30 am IST on April 4),
(This is a developing story)
Follow our live coverage of the “Liberation Day” event here
First Published: Apr 3, 2025 2:07 AM IS
