Thu Apr 03 09:47:40 UTC 2025: ## US Slaps 26% Tariff on All Indian Goods in Retaliatory Trade Move

**Washington D.C.** – The United States imposed a sweeping 26% tariff on all goods imported from India on Wednesday, escalating a long-running trade dispute. The move, announced by the White House, is a reciprocal measure following what the administration claims are unfair trade practices by India. The action affects billions of dollars in Indian exports, impacting key sectors including electronics, gems and jewelry.

The White House cited a significant trade deficit with India, totaling $46 billion, as justification for the tariffs. Specific examples highlighted included India’s significantly higher tariffs on US goods compared to US tariffs on similar Indian goods. For instance, India imposes a 70% tariff on US passenger vehicles while the US levies only 2.5%; US apples enter the US duty-free, while India charges a 50% tariff on US apples; and networking equipment faces 0% tariffs in the US but 10-20% in India.

The new tariffs are expected to hit approximately $14 billion worth of Indian electronics and over $9 billion in gems and jewelry exports the hardest. While auto parts and aluminum products escape the 26% tariff, they remain subject to a previously announced 25% tariff. The White House noted that pharmaceutical and energy products are exempt from this latest round of tariffs.

The US action is part of a broader strategy targeting several Asian nations. Reciprocal tariffs range from 24% (Japan, Malaysia) to 46% (Vietnam), with China facing a 34% tariff.

Beyond tariffs, the White House criticized India’s “uniquely burdensome and/or duplicative testing and certification requirements” in various sectors, arguing these non-tariff barriers hinder US exports to India by an estimated $5.3 billion annually.

Despite the escalating tensions, India and the US had agreed to negotiate a trade deal during Prime Minister Modi’s February visit. Reports suggest India is considering substantial tariff cuts on over $23 billion worth of US goods. India’s government believes that increased US tariffs on China could create opportunities for India to increase exports of textiles, apparel, footwear, and iron and steel products to the US market. The impact of these retaliatory tariffs on both economies remains to be seen.

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