US President Donald Trump has announced that reciprocal tariffs on India will come into effect from April 2, increasing the current trade tensions between the two countries. Trump accused India of imposing excessive trade barriers, indicating that American companies have been disadvantaged for a long time because of steep import levies enforced by New Delhi.
In response, Indian officials are in serious discussion to lower tariffs on a range of products, including principal American exports like agricultural produce, medical equipment, and technology gear. The negotiations are set to mitigate tension and prevent possible economic fallout on sectors which depend heavily on US trade.
Trade experts caution that such an evolution would hit industries like automotive, pharmaceuticals, and electronics, which are already operating in a sensitive balance amidst global economic instability. Companies in both countries are gearing up for supply chain disruptions if the tariffs come into effect as planned.
Even with the threat of tariffs, there are still diplomatic channels open, as India has indicated willingness to negotiate a solution. Trump’s strong stance, however, indicates a difficult way forward in seeing a mutually acceptable trade deal.
