Trump: Tariff a ‘mixed bag, not a setback,’ says Indian official.

Trump imposes a “discounted” 26% retaliatory tariff on Indian exports; hours later, a commerce ministry official told PTI that the impact was a “mixed bag” rather than a setback.

The official, requesting anonymity, said the universal 10% tariffs would take effect on all imports into the US from April 5, with the remaining 16% applying from April 10. He emphasized that the tariff was a “mixed bag and not a setback for India.”

Also Read : Deva Review: Shahid Kapoor’s Remake Fails Miserably

The commerce ministry is analyzing the impact on India’s trade and noted that the Trump administration is open to lowering tariff rates if its trade concerns are addressed. The White House stated that tariff rates would remain unchanged if countries refrained from further retaliation and worked to resolve trade issues.

‘India not treating US right,’ says Trump

During his “Liberation Day” announcement, Trump called Prime Minister Narendra Modi “a great friend” but insisted that India was “not treating us right.” He recounted telling Modi, “You’re a friend of mine, but you’ve not been treating us right. India charges us 52%, so we will charge them half of that—26%.”

Also Read : Mumbai: 20-Year-Old Woman Jumps Off 14-Storey Building, Dies

Trump presented a chart during his Rose Garden speech, claiming that India imposed a 52% tariff, including currency manipulation and trade barriers. In response, the US would impose a 26% reciprocal tariff. However, White House documents indicated that India would actually face a 27% duty.

India’s Tariff Rates and Retaliatory Measures

According to the document, India’s simple average Most Favoured Nation (MFN) tariff rate stands at 17%, significantly higher than the 3.3% charged by the US. A retaliatory tariff of a similar rate, combined with a 10% baseline tariff, would result in a total 27% tariff on Indian exports.

The NDA-led government is already negotiating a bilateral trade agreement with the US. Both nations aim to finalize the first phase of the pact by September-October this year.