Tariff Tensions: India Braces for US Challenges

The commerce ministry is strategizing potential impacts of US-imposed reciprocal tariffs on India starting April 2. With varied effects across sectors like agriculture and industry, this could render Indian exports uncompetitive. Bilateral trade remains crucial as US-India collaborations continue amidst these challenges, focusing on reducing barriers and addressing trade imbalances.

The Indian commerce ministry is actively planning for potential implications as April 2 approaches, marking the initiation of reciprocal tariffs by the US on its major trading allies, including India. This move by the Trump administration aims to reduce the US trade deficit and bolster domestic manufacturing.

Amid ongoing discussions for a bilateral trade agreement, concerns rise among Indian exporters over how these US duties might skew their competitive edge in the global market. A significant focus is on sectors such as agriculture and industry, which will likely face varied impacts from the tariff adjustments.

The disparity in tariffs, particularly high in US exports to India, poses substantial challenges. The commerce ministry's preparations involve assessing these scenarios to aid domestic industries in navigating the uncertainty. Furthermore, non-tariff barriers continue to be a hurdle, adding complexity as the US remains India's largest trading partner.

(With inputs from agencies.)