Thu Apr 03 17:08:31 UTC 2025: ## Trump Launches Global Trade War, Slapping India with 26% Tariffs

**New Delhi, April 4, 2025** – U.S. President Donald Trump initiated a sweeping global trade war on Wednesday, imposing substantial tariffs on imports from numerous countries, including a 26% levy on Indian exports. The move, despite ongoing bilateral trade agreement talks, sent global markets into a tailspin.

The tariffs, ranging from 10% to 49% depending on the country, were significantly higher than anticipated. Mr. Trump justified the action by citing persistent trade deficits, declaring it a “national emergency” and invoking the International Emergency Economic Powers Act (IEEPA). A 10% baseline tariff will apply to all countries starting April 5th, with higher, reciprocal tariffs on major trade deficit partners commencing April 9th.

While the White House cited India’s alleged 52% tariffs on U.S. goods, some confusion remains regarding the precise tariff rate applied to India (26% according to Trump, 27% according to U.S. Commerce Ministry documents). India’s official response was measured, with the Commerce Ministry stating it is assessing the impact and exploring potential opportunities. Despite the tariffs, India reiterated its commitment to the ongoing Bilateral Trade Agreement (BTA) talks aimed at boosting bilateral trade to $500 billion by 2030.

Other affected countries, including China and the European Union (hit with 34% and 20% tariffs respectively), reacted strongly, threatening countermeasures. Global markets plummeted, with significant losses reported in major indices worldwide. India’s Sensex dropped over 300 points, and the Nifty also experienced losses.

The Indian diamond and jewellery sector, which exports over $10 billion annually to the U.S., expressed concern over the impact of the new tariffs. The auto industry, however, anticipates minimal impact, as automobiles and parts were already subject to existing duties. Concerns were also raised regarding potential supply chain disruptions for Boeing, impacting aircraft deliveries to Indian clients.

Mr. Trump’s announcement highlighted what he termed “vicious attacks” on U.S. workers, using India, Thailand, and Vietnam as examples. This claim appears to contradict recent Indian tariff reductions on foreign motorcycles. The White House executive order emphasized addressing trade imbalances, pointing to India’s significantly higher average tariffs compared to China and the EU. The order also criticized India for high tariffs on various goods. While Russia, with minimal trade with the U.S., was notably absent from the tariff list.

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