The Commerce Ministry is analyzing the impact of the 26 percent reciprocal tariff or import duty imposed by the US on India, a senior government official said.
According to the official, the universal 10 per cent tariff will be applicable on all imports into the US from April 5 and the remaining 16 per cent will be applicable from April 10. "The ministry is analyzing the impact of the announced tariff," the official said.
He said there is a provision that if a country addresses the concerns of the US, the Trump administration may consider reducing the duty against that country.
India-US deal
India is already negotiating a bilateral trade deal with the US. The two countries are aiming to finalize the first phase of the deal by September-October this year. "The tariff is not a shock to India," the official said.
US President Donald Trump focused on the high duties imposed by India on US products and announced reciprocal tariffs on all countries. A 26 percent discounted reciprocal duty has been imposed on India.
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He showed a chart, which showed what kind of reciprocal tariffs these countries will now face compared to the tariffs imposed by countries like India, China, Britain, and the European Union. The chart also showed that India imposes a 52 percent duty, which includes currency operations and trade barriers, and now the US will charge India a "discounted" reciprocal tariff of 26 percent.
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Trump said about India, "India is very tough. Prime Minister Narendra Modi has just left and he is a good friend of mine, but I told him that you are our friend, you are not handling us properly. They charge 52 percent duty."
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