U.S. to Impose Reciprocal Tariffs from April 2; Will Trump's Tariff Threat Affect India?

U.S. to Impose Reciprocal Tariffs from April 2, Raising Concerns in Markets – Will It Affect India?

The United States is set to implement reciprocal tariffs starting April 2, causing unease in global markets. Traders are concerned about the potential impact on export-oriented sectors. However, reports suggest that India may not face significant setbacks.

Recently, former U.S. President Donald Trump clarified that there would be no exemptions on tariffs for steel and aluminum. He reiterated that no country would be excluded from his trade policies. "April 2 is a liberation day for our country. They charge us, and we will charge them. Moreover, we are going to impose additional tariffs on cars made from aluminum and steel," Trump stated.

Reciprocal tariffs mean that the Trump administration will impose tariff rates on imports into the U.S. based on the tariffs and non-tariff barriers that American exports face in other countries. The U.S. has already imposed a 20% tariff on Chinese goods and a 25% levy on steel and aluminum. On March 6, the U.S. temporarily suspended the 25% tariff on Canadian and Mexican products due to a one-month exemption granted to automobile manufacturers under the North American Free Trade Agreement (NAFTA).

Research indicates that U.S. tariffs could affect India's free trade agreements. The report highlights that "India is negotiating free trade agreements with the UK, Canada, and the European Union, focusing on areas such as services, digital trade, and sustainable development."