President Donald Trump has imposed some of the highest tariff rates on India compared to any other major US trading partner. Despite his strong personal relationship with Prime Minister Narendra Modi, Trump stated that it did not influence his decision.
The Trump administration has set a 26% tariff on imports from India, slightly above the 20% rate for the European Union, 24% for Japan, and 25% for South Korea. However, India’s tariffs are still significantly lower than China’s, which stands at a minimum of 54%, and lower than those placed on other regional competitors like Vietnam, which faces a 46% tariff.
This move presents a challenge for Modi’s government, which has tried to avoid these new levies by offering significant concessions on key issues central to Trump’s agenda. During Modi’s visit to Washington in February, both nations had expressed a commitment to working towards a trade deal this year.
Speaking at the White House on Wednesday, Trump addressed the tariffs, saying, “India, very, very tough. Very, very tough. The prime minister just left, and he’s a great friend of mine. But I said, you’re a friend of mine, but you’re not treating us right. They charge us 52%.”
Early reactions from India on Thursday were relatively calm, with officials seeking to ease concerns while exporters noted that India’s position remains comparatively stronger than that of other key regional competitors.
