Not 26%, but 27% tariff imposed on Indian exports by Trump administration

White House has released the order for tariffs imposed by the Trump administration on various nations

The Trump administration has officially imposed a 27 per cent tariff on Indian exports, according to an order released by the White House. This contradicts earlier statements from US President Donald Trump, who publicly mentioned a 26 per cent tariff on Indian goods.

 

Speaking about India, President Donald Trump described tariffs imposed by New Delhi as "very, very tough." He stated, "Their Prime Minister (Narendra Modi) just left (the US recently)... he is a great friend of mine, but I said to him that 'you're a friend of mine, but you've not been treating us right.' India charges us 52 per cent, so we will charge them half of that – 26 per cent."

 

However, confusion arose when the tariff chart unveiled by Trump listed India’s tariff rate as 26 per cent, while the official White House order specified 27 per cent. Similar discrepancies were noted for other countries, including South Korea, Thailand, Myanmar, and others whose number is off by one percentage point.  ALSO READ | Explained: How will Donald Trump's reciprocal tariffs impact India?

 

The corrected tariffs include:

Bosnia and Herzegovina: 35 per cent announced, 36 per cent in the order  Botswana: 37 per cent announced, 38 per cent in the order  Cameroon: 11 per cent announced, 12 per cent in the order  Falkland Islands: 41 per cent announced, 42 per cent in the order  Myanmar: 44 per cent announced, 45 per cent in the order  Thailand: 36 per cent announced, 37 per cent in the order  Serbia: 37 per cent announced, 38 per cent in the order  South Africa: 30 per cent announced, 31 per cent in the order  South Korea: 25 per cent announced, 26 per cent in the order  Switzerland: 31 per cent announced, 32 per cent in the order   

Under the revised tariff structure, Indian goods will still face a 25 per cent tariff on steel, aluminium, and auto-related goods, which were announced earlier by the Trump administration.

 

Meanwhile key sectors such as pharmaceuticals, semiconductors, copper, and energy products will remain tariff-free.  ALSO READ | Trump's 27% tariff on Indian exports: Who gains and who takes the hit?

 

Although the new 27 per cent tariff on Indian goods is substantial, India remains in a better position compared to its key competitors. The US has set even higher reciprocal tariffs on goods from other countries, with China facing 54 per cent, Vietnam 46 per cent, Bangladesh 37 per cent, and Thailand 37 per cent. This gives Indian exporters a relative advantage in several sectors, particularly textiles, electronics, and processed food products.

 

Exporter hope that ongoing negotiations for a bilateral trade agreement between India and the US could provide relief from some of these tariffs.