Trump's 27% tariff hits India; mixed bag, not setback: Delhi

NEW YORK: President Donald Trump slapped universal duties on all countries exporting goods to the US and additional steep levies on countries like India, potentially impacting sales of products from shrimp to steel in the world's biggest economy.

The US imposed a steep 27% tariff on all goods, barring pharmaceuticals, semiconductors, energy and certain minerals not available in the US, that are imported from India, calling the country the "worst offenders" of unfair trade practices. Responding to the tariffs, the Commerce Ministry said it is a mixed bag and not a setback. “There is a provision that if a country addresses the concerns of the US, the Trump administration can consider reducing the duties against that nation,” an official pointed out.

While exports of products such as shrimp, carpet, medical devices and gold jewellery to the US will be impacted, exports of electronics, textiles, and pharma will get an edge over its competitor countries.

Exemption of energy from the tariffs would also mean that India can continue to export fuels like gasoil and gasoline to the US.

The goods exempted made up for just over 25% of the total exports from India to the US.

Trump announced the imposition of additional ad valorem duties ranging from 10% to 50% on imports from all trading partners. The baseline duty of 10 per cent will be effective on India from April 5 and an additional 27% from April 9.

The 27% duty would be over and above any existing levy that Indian products entering the US may currently attract.

Though the move is expected to impact India's exports of certain goods to the US, experts say that India is better placed than its competitors, including Bangladesh (37%), China (54%), Vietnam (46%) and Thailand (36%) who face increased levies.

Trump said the tariffs imposed on India were half of what New Delhi charged the US -- 52% after factoring in trade and non-trade barriers and currency adjustments.