The Indian government has indicated it is analyzing the impact of 26% tariffs imposed by the US on imports from the country

New Delhi is examining the effect of 26% reciprocal tariffs announced by US President Donald Trump, the PTI news agency reported on Thursday, citing a senior Indian government official. The tariffs will take effect in the next ten days.

Trump announced new tariffs for exports from all countries on Wednesday, presenting a chart comparing the tariffs imposed by Washington's trade partners such as India, China, the UK, and the European Union, among others, with reciprocal tariffs that these countries will now face.

"India, very, very tough," Trump said at a news event at the White House. "But I said, you're a friend of mine, but you're not treating us right. They charge us 52%." Trump, however, added that Indian Prime Minister Narendra Modi is his "great friend." The US leader earlier called Modi "a great negotiator and bargainer."

The Indian official quoted by PTI said the commerce ministry is examining the effects of the new tariffs. The Trump administration could reduce duties if concerns are addressed, the official stated, adding: "It is a mixed bag and not a setback for India.

Industry watchers have suggested that the impact of tariffs seems to be mixed, which the Indian government is hoping will be ironed out further when the two countries agree the first phase of a bilateral trade deal.

During Modi's February visit to Washington, the two nations agreed to work towards abilateraltrade pact this year, the contours of which are likely to emerge by October.

The Trump administration had hinted that India would face higher export duties as the south Asian nation levied a higher tax on imports from American companies.

Even while running for president, Trump called India the "tariff king." In February, New Delhi already announced reducing basic customs duties on items, including luxury cars, solar cells, as per reports, in a move that is seen as aimed at addressing US trade concerns.

According to an Economic Times report, in the country's federal budget for the 2025 financial year (beginning on April 1) the government proposed lowering the peak import tariff from 150% to 70%, and bringing average tariffs down from 13% to below 11%. Further, according to a Reuters report, India alsoproposedtariff reductions on US agricultural products such as almonds, cranberries, and bourbon whiskey.

Additionally, India has expressed its willingness to buy American defense equipment as well as liquefied natural gas (LNG) and is reportedly open to further tariff cuts. "India will not react but act and will negotiate slowly and get into a consensus," said Kranthi Bathini, equity strategist at Wealthmills Securities, a Mumbai-based firm.

International rating agencies and analysts view the impact as "limited" due to India's resilient domestic economy. Firms like Goldman Sachs, Nomura, and Fitch share this sentiment, echoing SBI Research's report that the impact of Trump's tariffs will be limited.

(RT.com)