President Donald Trump’s Executive Order Imposes 27% Additional Duty On Indian Goods

The Indian government is actively engaging with the United States following an executive order by President Donald Trump that imposes an additional 27% duty on Indian goods.

This move comes as part of the US’s reciprocal tariff policy, which affects imports from all trading partners.

Tariff Impact & Commerce Ministry’s Response

The Commerce and Industry Ministry, led by Minister Piyush Goyal, is carefully evaluating the impact of these tariffs.

The government will enforce the baseline 10% duty starting April 5, 2025, and will implement the remaining country-specific additional duty on April 9, 2025.

The Indian government is closely working with industry stakeholders and exporters to assess the situation and explore potential opportunities arising from this new US trade policy.

An official statement from the Commerce Ministry emphasized that India is committed to safeguarding the interests of its exporters while aligning trade policies with the broader vision of Viksit Bharat (Developed India).

The Department of Commerce is gathering feedback from Indian businesses to formulate a strategic response.

Ongoing Trade Negotiations

Despite these challenges, India remains committed to expanding bilateral trade with the US.

On February 13, Prime Minister Narendra Modi and President Donald Trump launched the ‘Mission 500’, aimed at more than doubling bilateral trade to $500 billion by 2030.

As part of this initiative, trade teams from both countries are actively discussing and working to finalize a comprehensive bilateral trade agreement that spans multiple sectors, including supply chain integration.

A Commerce Ministry spokesperson reaffirmed India’s diplomatic approach, stating, “These talks aim to enable both nations to expand trade, investments, and technology transfers. We remain in touch with the Trump Administration on these issues and expect to take them forward in the coming days.”

Strengthening India-US Strategic Partnership

India values its Comprehensive Global Strategic Partnership with the United States and continues to prioritize collaboration under the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) framework.

The goal is to ensure that trade remains a pillar of mutual prosperity and drives transformative economic change for both nations.

The Indian government’s proactive engagement in these discussions reflects its commitment to mitigating the impact of tariffs while leveraging opportunities for enhanced economic ties.

The coming weeks will be crucial in shaping the future trajectory of India-US trade relations.

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