India announced on Thursday that it is assessing the impact of the United States' decision to impose a 27 per cent tariff on its imports, despite ongoing efforts to secure trade concessions from Donald Trump's administration. The announcement came shortly after the US president unveiled the new tariffs, triggering volatility in global markets, with stock and oil prices experiencing sharp declines. India's trade ministry is actively evaluating the implications of the US decision and consulting with local industries and exporters. The ministry underscored that discussions with Washington remain ongoing to strengthen trade, investment, and technology collaborations. Both countries are working toward a phase-one trade agreement, expected by autumn 2025, following negotiations between Trump and Indian Prime Minister Modi earlier this year. The new tariffs, set to be implemented in two phases beginning April 9, will impact key sectors such as electronics, gems, and jewelry, while pharmaceuticals have been notably exempted. India's pharmaceutical industry, which exports approximately $9 billion worth of drugs to the US annually, welcomed the exemption. Despite concerns over the tariff hike, India's financial markets showed resilience. According to Reuters, the Nifty 50 and BSE Sensex indices declined by a modest 0.3 per cent, a smaller dip compared to other Asian markets. The Indian rupee momentarily weakened but quickly stabilized at 85.45 against the US dollar. Notably, the tariff rates imposed on India are lower than those applied to other nations, including China and Vietnam. This could provide Indian industries such as apparel and footwear with a competitive advantage. While the US maintains a $46 billion trade deficit with India, industry experts remain optimistic that the tariffs will not significantly undermine India's export competitiveness. This development is expected to increase pressure on Prime Minister Modi to engage in further negotiations with Trump in an effort to mitigate the tariff impact on Indian exports. Attribution: Reuters Subediting: Y.Yasser
