Trump’s Tariffs: 26% on India, 104% on Chinese Exports

US President Donald Trump’s new round of tariffs officially came into effect at 9.30 am on Wednesday (IST), impacting exports from 86 countries.

The latest wave of import duties is being enforced under what the Trump administration calls a policy of “reciprocal tariffs,” targeting nations accused of running large trade surpluses with the US. The tariffs start at a baseline rate of 10 per cent, which was implemented over the weekend. However, many countries face far steeper duties, ranging between 11 per cent and 84 per cent.

Among the hardest hit is China, now facing a total tariff burden of 104 per cent on its exports to the US. This combines an earlier 20 per cent duty, a 34 per cent addition announced last week, and a last-minute 50 per cent hike signed by Trump late Tuesday. Reacting strongly, China’s Commerce Ministry said, “The US threat to escalate tariffs on China is a mistake on top of a mistake… China will never accept it… China will fight to the end.”

Impact on India

India, meanwhile, is subject to a 26 percent tariff on its exports. While the US has spared some key Indian goods, such as semiconductors, copper, and pharmaceuticals, other major export categories like auto parts, gems, and jewellery are expected to take a hit. However, Trump said on Wednesday that the US will soon announce major tariffs on pharmaceutical imports. Notably, India supplies nearly half of all generic medicines consumed in the US.

Sources said the Indian government is in close contact with exporters and is preparing a mitigation strategy. A high-level meeting of the Union Cabinet is scheduled today to assess the fallout and discuss ways to protect India’s trade interests.

Despite the blow, India is not planning immediate counter-tariffs, choosing instead to focus on ongoing trade negotiations. Officials say New Delhi is working toward finalising the US-India Bilateral Trade Agreement (BTA) that was discussed during Prime Minister Narendra Modi’s visit to Washington earlier this year. In March, the two countries had agreed to the terms of reference for the pact.

A government official also told Reuters that India is hopeful of gaining relief under a clause in the US executive order, which allows for exemptions to countries that take “significant steps to remedy non-reciprocal trade arrangements.” After China, the countries facing the highest duties include:

– Lesotho: 50 per cent

– Cambodia: 49 per cent

– Laos: 48 per cent

– Vietnam: 46 per cent

– Madagascar: 47 per cent

– Taiwan: 32 per cent

– South Korea: 25 per cent

– Japan: 24 per cent

– European Union: 20 per cent

Meanwhile, stock markets around the world also reacted negatively to the tariff rollout. The US indices posted losses for a fourth straight day, and Asian markets opened lower, with South Korea’s Kospi entering bear market territory.

News courtesy: Business Standard

US President Donald Trump’s new round of tariffs officially came into effect at 9.30 am on Wednesday (IST), impacting exports from 86 countries.

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