Trump tariff on India back to 26% from 27% in revised White House document

A White House document on Friday showed that the Trump government's reciprocal tariffs have been revised for at least 14 countries, including India.

India’s rate was originally listed at 27 per cent, as against the 26 per cent shown previously by Trump during the announcement on April 2. However, the latest annex document shows that the tariffs have been revised down to 26 per cent.

US President Donald Trump, a 'friend' of Indian Prime Minister Modi, on April 2 said that New Delhi has not been treating Washington 'right' and therefore has slapped the fifth-largest economy with 26 per cent tariffs. This move, part of a broader protectionist policy, aims to boost US domestic manufacturing and reduce its trade deficit with India, which stood at $35.31 billion in 2023-24.

Also Read: India is 'tariff-ied'- Trump's reciprocal tariffs and its impact on New Delhi explained

South Korea's rate also fluctuated, originally set at 25 per cent in Trump's announcement, then increased to 26 per cent in the annex, and has now reverted back to 25%.

Other countries experiencing similar discrepancies include Botswana, Cameroon, Malawi, Nicaragua, Norway, Pakistan, the Philippines, Serbia, South Africa, Thailand, Vanuatu, and the Falkland Islands.

Under the executive order implementing Trump's reciprocal tariff policy, all U.S. trading partners began with a global 10% tariff on April 5. Following this, only the countries listed in the annex would have their rates elevated to the revised numbers.

Notably, certain overseas territories of larger nations, such as Reunion (initially listed at 37 per cent) and other territories like Saint Pierre and Miquelon and Norfolk Island, were omitted from the formal annex entirely.

How has India planned to navigate through Trump's tariffs?

The Commerce and Trade Ministry on Thursday responded to US' Liberation Day move by saying that they will remain in touch with US and that the department is also studying the "opportunities that may arise" due to this new development in the US trade policy.

"Keeping in view the vision of Viksit Bharat, the Department is engaged with all stakeholders, including Indian industry and exporters, taking feedback of their assessment of the tariffs and assessing the situation. The Department is also studying the opportunities that may arise due to this new development in the US trade policy," said the ministry in the statement.

Also Read: Commerce Ministry responds to Trump's 27% tariff, says 'India to remain in touch with US'

Before the reciprocal announcement, the U.S. tariff rates were among the lowest, with simple average tariffs at 3.3%, compared with India's 17%, the White House said.

Last week Reuters reported that New Delhi is open to cutting tariffs on U.S. imports worth $23 billion to mitigate the impact on its exports in sectors like gems and jewellery, pharmaceuticals and auto parts.

Modi's administration has taken a number of steps to win over Trump by lowering tariffs on high-end bikes, bourbon and dropping a tax on digital services that affected U.S. tech giants.

New tariff structure on Indian goods

• Existing tariffs: 25% on steel, aluminum, and auto parts.
• New tariffs: April 5-8: A 10% baseline tariff on remaining Indian goods; April 9 onwards (now) 26% tariffs will apply to India-specific imports.
• Exempted sectors: Pharmaceuticals, semiconductors, energy products (oil, gas, coal, LNG), and copper.