GUWAHATI: The United States has reduced the import duties to be imposed on India from 27% to 26%, according to a White House document. These duties will come into effect from Wednesday, April 9.
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While announcing reciprocal tariffs on multiple countries, a chart was presented showing the tariffs that India, China, the United Kingdom, and the European Union will now have to pay. The chart indicated that India imposed a 52% tariff, including currency manipulation and trade barriers, and in response, the U.S. would impose a reciprocal tariff of 26%.
Initially, the White House had announced a 27% duty on Indian imports. However, the latest revision has reduced it by one percentage point. Industry experts are of the opinion that this minor reduction will not have a significant impact on trade.
Between 2021-22 and 2023-24, the U.S. remained India’s largest trading partner, accounting for 18% of India’s total goods exports, 6.22% of imports, and 10.73% of bilateral trade. In 2023-24, India recorded a trade surplus of $35.32 billion with the U.S. This was higher than the $27.7 billion surplus in 2022-23 and $32.85 billion in 2021-22.
India’s major exports to the U.S. in 2024 included drug formulations and biologicals worth $8.1 billion, telecom instruments worth $6.5 billion, and precious and semi-precious stones worth $5.3 billion.
Petroleum products, jewellery, garments, and iron and steel products also formed a significant share, as imports from the U.S. included crude oil valued at $4.5 billion, petroleum products at $3.6 billion, and coal at $3.4 billion, along with diamonds, electric machinery, and aircraft components.