'Carefully examining implications': India's first reaction to 27% US tariffs announced by Trump

India on Thursday said it is carefully examining the implications of the United States' decision to impose a 27% tariff on Indian imports, even as discussions continue to conclude a bilateral trade agreement between the two nations.

US President Donald Trump on Wednesday issued an executive order imposing additional ad-valorem duties ranging from 10% to 50% on imports from all trading partners. According to the White House, India will face a 27% tariff under this policy, which will come into effect from April 9.

The Department of Commerce, in a statement, said it is assessing the impact of the tariff hike while engaging with stakeholders, including the Indian industry and exporters, to gauge their response. The department is also studying potential opportunities that may emerge due to this shift in US trade policy.

“The Department of Commerce is carefully examining the implications of the various measures/announcements made by the President of the USA. 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 ministry said.

India and the US have been engaged in discussions to finalise a broad-based bilateral trade agreement under the ‘Mission 500’ initiative, which aims to double bilateral trade to $500 billion by 2030. The trade talks are focused on strengthening supply chain integration, increasing investments, and facilitating technology transfers between the two nations.

“Discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement. These cover a wide range of issues of mutual interest including deepening supply chain integration,” the ministry added.

The US remains India's largest trading partner, accounting for around 18% of India’s goods exports and a trade surplus of USD 35.32 billion in goods in 2023-24. Major Indian exports to the US include pharmaceuticals, telecom instruments, and precious stones, while key imports from the US comprise crude oil, coal, and electric machinery.