New Delhi: The Prime Minister’s Office (PMO) has called for a high-level meeting on Thursday to assess Trump’s tariff order, reports quoting government sources claimed. The Principal Secretary to the PM is chairing the high-level meeting, reports India Today. Senior officials from the Commerce Ministry, NITI Aayog, DPIIT, and other departments are briefing the PMO, the reports adds.
This comes hours after Trump imposed a 27% reciprocal tariff on imports from India. According to reports, a baseline 10% tariff starts on Saturday before the remaining, higher reciprocal tariff takes effect on April 9.
Union Minister of State for Finance, Pankaj Chaudhary, also reacted to Trump’s 27% tariffs on India. According to the minister, India was assessing the implications of the tariff hike on the country imposed by Trump administration.
“We will analyse the implications. For Trump, it is US first, and for Modi ji, it is India first,” Pankaj Chaudhary said, as quoted by India Today.
What does India export, import from the US?
India’s primary exports to the US include pharmaceuticals, telecom equipment, gemstones, petroleum products, gold jewellery, and ready-made cotton garments. Key commodities that India imports from US include crude oil, coal, petroleum products, electric machinery, and aerospace components.
Hardest-hit Indian sectors
Among the worst affected are India’s electronics and gems and jewellery sectors. The US imports nearly $14 billion worth of electronics and over $9 billion worth of gems and jewellery from India, reported the Business Standard. Prior to this hike, US tariffs on Indian electronic goods averaged just 0.41%, while jewellery and gem products faced duties of around 2.12%.
Auto parts and aluminium exports remain outside the scope of the latest 26% levy.
Sectors exempt from Trump tariff
Pharmaceutical products and energy exports, which collectively account for nearly $9 billion in trade, have been exempted from the new tariff structure.
Products exempt from import tariff in the US include:
- Copper, pharmaceuticals, semiconductors, and lumber
- Precious metals like gold and silver
- Certain energy products and minerals that aren’t available in the US will also be excluded.
Advantage likely for Indian textiles
In the textile sector, India may be in a relatively advantageous position when compared to other Vietnam, China and Bangladesh.
Given that textiles contribute only 2 per cent to India’s gross domestic product (GDP), compared to 11 per cent for Bangladesh and 15 per cent for Vietnam, the impact on India’s overall economy may be milder, experts in a Business Standard report claim.
Check out country-wise tariff chart here:
