Trump’s 26% Reciprocal Tariff on India: Impact & Is the Indian Economy Insulated?
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Trump’s 26% Reciprocal Tariff on India: Impact & Is the Indian Economy Insulated? US President Donald Trump has announced a sweeping reciprocal tariff policy , imposing a 26% tariff on Indian goods alongside levies on multiple nations to "rebalance" trade relations. During his ‘Liberation Day’ speech, Trump accused foreign nations of exploiting the US, stating: "Our country has been looted, pillaged, raped, plundered by foreign nations." The proposed tariffs include: China: 34% India: 26% European Union: 20% Vietnam: 46% Japan: 24% Taiwan: 32% Trump justified the move by pointing out disparities in trade barriers , citing India’s 52% tariff on US motorcycles versus America’s 2.4% duty on imported bikes. Potential Impact on India 1. Key Vulnerable Sectors A Citi Research report warns that India could suffer annual losses up to $7 billion , with the most affected sectors being: Chemicals & metals Gems & jewellery ($8.5B exports) Ph...