India is monitoring impact of reciprocal tariffs imposed by the US, which seem to be a mixed bag, Commerce Ministry officials in the know told NDTV Profit.
The statement comes hours after US President Donald Trump announced a 26% duty on Indian imports. A common 10% baseline tariff will come into effect starting April 5, while additional 16% reciprocal tariff will hit India starting April 10.
Notably, India's weighted average tariff rate on American imports is 12%, compared to the US' previous 3% on Indian goods.
The US tariffs can be a mixed bag for India, the aforementioned Commerce Ministry sources said. Some sectors will get impacted, while some might benefit as India gets a competitive edge against nations like Vietnam and Indonesia, considering trade tariffs imposed on them, they mentioned.
US President Trump retains power to reduce tariffs for countries that negotiate or satisfy American concerns, the sources said.
India has an advantage in this scenario, given that negotiations over bilateral trade agreement with the US have already started, they pointed out.,
More elaborate statement and analysis of the US tariffs by Commerce Ministry are expected later during the day.
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