Talks with US ongoing, impact on Indian industries under review: EAM Jaishankar on 26% tariff
Days after the US announced reciprocal tariffs on India, External Affairs Minister S Jaishankar said discussions with Washington are underway and the impact on Indian industries is being evaluated, Zee Business reported on Friday.
On Thursday, Jaishankar also attended the 20th BIMSTEC Ministerial Meeting in Bangkok, where he extended India’s support to Myanmar and Thailand following a recent earthquake. “Thank you FM Maris Sangiampongsa of Thailand for the warm welcome in Bangkok today for the 20th BIMSTEC Ministerial Meeting. Look forward to conversations today ahead of the BIMSTEC Leader’s Summit.”
The 6th BIMSTEC Summit was held on Friday, marking a significant regional engagement between India and its neighbours in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) group. Prime Minister Narendra Modi had left for Bangkok on Thursday to attend the summit.
Also Read:Will Trump’s new tariffs spell trouble for Indian pharma stocks?
US revises proposed tariff on Indian goods to 26% from 27%: White House
Meanwhile, the US has revised its proposed reciprocal tariff on Indian goods from 27 per cent to 26 per cent, according to a White House document. The revised duties will take effect from April 9.
US President Donald Trump, while announcing the tariffs on various countries including India, China, the UK, and the European Union, held up a chart indicating India imposes around 52 per cent in tariffs, factoring in currency manipulation and trade barriers. In response, the US will now impose a 26 per cent duty on Indian goods, slightly down from the previously announced 27 per cent. Industry experts say the 1 per cent revision is unlikely to make a significant difference.
India-US trade remains robust despite tensions
From 2021-22 to 2023-24, the US remained India’s largest trading partner. It accounted for about 18 per cent of India’s total goods exports, 6.22 per cent of imports, and 10.73 per cent of total bilateral trade. India registered a trade surplus with the US of 35.32 billion dollars in 2023-24, up from 27.7 billion dollars in 2022-23, and 32.85 billion dollars in 2021-22.
In 2024, India’s main exports to the US included drug formulations and biologicals worth 8.1 billion dollars, telecom instruments at 6.5 billion dollars, precious and semi-precious stones at 5.3 billion dollars, petroleum products at 4.1 billion dollars, jewellery at 3.2 billion dollars, ready-made garments of cotton including accessories at 2.8 billion dollars, and iron and steel products at 2.7 billion dollars.
Key imports from the US included crude oil valued at 4.5 billion dollars, petroleum products at 3.6 billion dollars, coal and coke at 3.4 billion dollars, cut and polished diamonds at 2.6 billion dollars, electric machinery at 1.4 billion dollars, aircraft and spacecraft parts at 1.3 billion dollars, and gold also at 1.3 billion dollars.
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