Donald Trump Tariff on India: US President Donald Trump on Wednesday (April 2) announced a policy of imposing heavy tariffs on several countries like India, China, Japan and European Union, announcing ‘Liberation Day’ at the Rose Garden of the White House. Under this new policy, 26 percent tariffs will be imposed on products imported from India.

Announcing ‘Mukti Divas’ at the Rose Garden of the White House, Trump said that my fellow Americans, this is the liberation day, which had been waiting for a long time. 2 April 2025 will be considered as the day when the US industry was reborn, the fate of America has changed and we have started making America prosperous again.

Us President Donald Trump Imposes 26% “Reciprocal Tarifs” on India, Followed by 34% On China, 20% On Eu, and 24% on Jap pic.twitter.com/0uhlScksov

– ANI (@ani) April 2, 2025

Why was a tariff imposed on India?
Trump described Prime Minister Narendra Modi as his best friend. However, he said that despite this, India is not treating America properly. He alleged that India imposes 52 per cent fees on US products, so the US will also impose 26 per cent tariffs in return.

Which countries were affected?
Under Trump’s new ‘reciprocal tariffs’ policy, many countries have been imposed:

Country tariff (%)
India 26%
China 34%
European Union 20%
Japan 24%
Taiwan 22%
Israel 17%

What will be the effect of the new tariff policy?
Trade between India and the US has already been under stress over many issues. This tariff can make trade in America for Indian companies. By levying more charges on Indian products, American consumers may have to buy expensive goods. Many American companies, which import raw materials or finished products from India, can also increase the cost.

Possibility of international trade war
India and other affected countries can take retaliation and increase tariffs on American products. This can create a global trade war situation. However, Trump claims that this tariff will revive the US economy. He says that these tariff policies are really good. We had planned to impose even more fees, but we kept it low. However, many economists believe that this policy can damage the US economy as it can weaken global trade relations.

Us Donald Trump Tariff on India: According to a new report by CARAEGE ratings, India may face export losses of $ 3.1 billion (about Rs 25,700 crore) due to a possible new tariff to be declared by US President Donald Trump. This figure is equal to about 0.1 percent of India’s GDP (GDP), which can become a matter of concern for the Indian economy.

According to Smita Rajpurkar, director of CARAIGE Ratings, increasing tariffs may have a serious impact on India’s major export areas, including many areas. For example, textile and garment industry, automobiles and auto parts include IT and pharmaceuticals. Explain that a huge amount of cloth is exported to America from India, which will be affected by increasing tariffs. The Indian auto sector is already facing recession, so it can be further affected by the new tariff. India’s IT and pharmaceutical companies make good profits from the US market. Increasing tariffs will increase cost, which can reduce the competitive capacity of Indian companies.

Possible impact of tariff on India
If US President Donald Trump announces a tariff on India, then many types of major effects can be seen, which is not being considered right for the Indian economy in any way.

Exports fall: Increased tariffs will cost Indian companies to send goods to America, which can reduce their demand.
Putstation in currency: Indian rupee can weaken due to increasing business tension with America, which will make imports expensive and inflation can increase.
Investment reduction: Global investors can avoid investing in India due to increasing trade stress, which can affect Indian stock market.
Business war threat: The report also warns that if the global trade war broke out, it can increase the instability in the Indian economy and negatively affect financial stability.

Can India overcome this crisis?
India will need to adopt some strategies to overcome this crisis, such as focus on other export markets. Along with this, insisting on increasing trade with Europe, Africa and Asian countries by reducing dependence on America. The local industry will have to provide subsidy and tax relief so that they can withstand the impact of the new tariff and maintain competition. India will have to talk to the US on new business treaties, so that economic balance can be maintained.

Reciprocal tariff in usa: The White House said on Tuesday that the tariffs to be announced by President Donald Trump on April 2 will be implemented immediately, while the auto tariffs will be implemented on April 3 as per the schedule.

White House Press Secretary Caroline Lewitt told reporters that President Trump along with his business advisors is spending Tuesday to finalize the tariff scheme. Lewitt said, “According to my knowledge, the tariff will be announced tomorrow.”

Caroline Levitt said this

Press Secretary Caroline Lewitt said that President Trump, along with his trade and tariff team, is engaged in ensuring a better deal for American workers. He said that more information will be available about this within 24 hours. Levit also indicated that Trump is ready to interact with countries and companies that want low rates and many countries have already contacted the President.

Lewitt said, “The President is always ready to take decisions and talks, but they are very concerned to ensure that American workers get the right and appropriate deal and they are working to rectify the mistakes of the past.”

Reciperook tariffs will be declared on Liberation Day

President Trump has announced the declaration of reciperook tariff on the occasion of Liberation Day. The announcement will be held at 4 pm (local time) at the Roja Garden of the White House on Wednesday. Trump has imposed several import duty since January 20, including imports from Canada and Mexico, duty on metals, and recently on automobiles. Trump also said that permanent tariffs on cars will be applicable from this Thursday.

Amid the ongoing uncertainty to install reciperook tariffs by the US administration, the Indian market was panting in early trade on Tuesday morning. The Sensex saw a huge decline of 1100 points, while the Nifty also continued to decline.

The Sensex opened at 76,882.58 points, which closed at 77,414.92. At around 10.35 pm, 981 points fell at 76,434 at 76,434. While it remains at 7230 with a decline of 50 points in the Nifty.

Let us know the five important factors from which the direction of the Indian stock market changed:

Uncertainty about 1-Taurifer Plan:

There is a lot of concern among investors about the tariff to be imposed by the Trump administration in April. According to Bloomberg, Treasury Secretary Scott Besant told Fox News that Donald Trump would reveal the reciperook Tariff Plan during a program at the White House Rose Garden in Washington at 3 pm on Wednesday.

Describing the April 2 announcement as ‘Liberation Day’, President Trump said that its purpose is to punish the business parties which they believe that they have taken advantage of America. Trump has indicated that the tariff plan has been decided and all countries have been included in it. However, experts say that the risk of tariffs will definitely be seen in the market, but this will not affect India much, as more than half of American is reducing tariffs on imported goods.

2- RBI Monetary Policy Committee meeting:

The monetary policy committee of Reserve Bank of India is going to meet between 7 and 9 April. In this, a decision will be taken on policy decisions and interest rates among global uncertainty. It is believed that 25 basis points can be announced by RBI on April 9.

Precautions on the result of 3-fourth quarter:

The results of the fourth quarter of the income of Indian companies are now important for the market. After the last three disappointing quarters, it is believed that the result of the fourth quarter will show some betterment. If the results do not come in the fourth quarter as expected, then the improvement that has happened in March can be disgusted. Experts believe that the first and second quarters of the financial year 2025-26 can be seen to see significant improvements.

Also read: Analysis: Why is the danger of recession hovering over the US between reciperook tariffs? Experts worrying about Trump’s move