26% Tariff on India: U.S. President Donald Trump announced sweeping new tariffs on major trading partners, including India, China, Brazil, Japan, and the European Union, declaring April 2 as “Liberation Day.” The tariffs, aimed at enforcing trade reciprocity, are set to take effect from April 9.
Amid ongoing trade negotiations, India faces a 26% reciprocal tariff from the U.S., which Trump described as a “discounted” rate. Speaking at the “Make America Wealthy Again” event, he praised Indian Prime Minister Narendra Modi but criticized India’s existing 52% tariffs on U.S. goods, arguing that the U.S. previously charged India “almost nothing.”
The U.S. remains India’s largest trading partner, with key exports including metal ores, gemstones, electrical equipment, pharmaceuticals, and textiles. While sectors such as semiconductors, furniture, and rubber contribute a smaller share, they are highly dependent on U.S. demand, with semiconductors particularly vulnerable, as 85% of India’s semiconductor exports are U.S.-bound.
Trump’s tariff package includes a 34% tariff on China, 20% on the EU, 10% on the UK, and 24% on Japan, in addition to a 10% base duty on all U.S. imports. A 25% tariff on foreign-made automobiles will also be enforced. The White House has not yet provided details on industry-specific tariff applications.
The new tariffs will take effect immediately following an official announcement. However, the White House has yet to publish the required enforcement notice. A previously announced auto tariff of 25% will be implemented from April 3, adding pressure to global automakers. Trump’s administration has already imposed 20% duties on all Chinese imports and 25% tariffs on steel and aluminum, covering nearly $150 billion worth of goods.
U.S. Treasury Secretary Scott Bessent warned that any retaliatory measures from affected nations would escalate trade tensions further. With global markets closely watching, the new tariffs signal a tougher stance on international trade under Trump’s administration.
