Trump’s 26% tariff on Indian exports: A “Mixed Bag,” says Commerce Ministry

A few hours after U.S. President Donald Trump announced a 26% retaliatory tariff on Indian exports—calling it a “discounted” rate—a commerce ministry official told news agency PTI that the impact on India was a "mixed bag and not a setback."

Speaking on condition of anonymity, the official explained that a universal 10% tariff would apply to all U.S. imports starting April 5, with the remaining 16% taking effect from April 10. “It is a mixed bag and not a setback for India,” the official reiterated.

The official also mentioned that the commerce ministry was assessing the tariff’s effect on India’s trade. Additionally, they noted that the Trump administration had shown a willingness to reduce the tariff if its trade concerns were addressed.

Trump: "India Not Treating Us Right"

During his “Liberation Day” announcement, Trump praised Prime Minister Narendra Modi as a "great friend" but argued that India was “not treating us right.” The White House stated that tariff rates would remain unchanged if countries refrained from retaliating and addressed U.S. concerns over bilateral trade.

“Their Prime Minister (Narendra Modi) just visited the U.S. He is a great friend of mine, but I told him, 'You're my friend, but you haven’t been treating us right.' India charges us 52%, so we’ll charge them half—26%,” Trump said.

A chart Trump displayed during his speech at the White House's Rose Garden claimed that India imposed a 52% tariff, which included trade barriers and currency manipulation. In response, the U.S. would levy a "discounted" 26% tariff on Indian imports. However, White House documents indicated that India would actually face a 27% duty.

According to the document, India's simple average Most Favoured Nation (MFN) tariff rate is 17%—much higher than the 3.3% charged by the U.S. With the new tariff structure, a 10% baseline tariff, combined with retaliatory measures, would result in a total 27% tariff on Indian goods.

Meanwhile, the NDA-led Indian government is already in talks with the U.S. to negotiate a bilateral trade agreement. Both nations aim to finalize the first phase of the deal by fall (September-October) this year.