New Delhi,feb 15
The impact of the proposed reciprocal tariffs by the United States on India will depend on how the policy is implemented–whether on a sectoral basis or a product-specific basis.
Trade experts suggest that there is still no clarity on the rules and conditions of this tariff policy, which has been widely discussed since U.S. President Donald Trump first mentioned it.One of the key questions is whether the Reciprocal Tariffs will apply only to products where the US has an interest or if it will be a broader, bilateral measure. This distinction is important, as it will determine how much India’s exports will be affected.For example, if the US raises tariffs on pistachios to 10 per cent to match India’s existing rate, it will have no impact on India since the country does not export pistachios. This situation applies to several other products as well.Additionally, for 75 per cent of U.S. exports to India, the average tariff is already below 5 per cent, which means that selectively increasing tariffs may not be an effective strategy for the U.S.However, if the policy is applied sector-wide, the impact on India could be different. The U.S. currently imposes high tariffs of 15-35 per cent on Indian labor-intensive exports such as textiles, garments, and footwear.Experts suggest that if India negotiates a tariff reduction agreement, it could benefit from lower U.S. tariffs on these products, making Indian exports more competitive.Ajay Srivastava, Founder of the Global Trade Research Initiative, explained the situation to ANI, stating that if the U.S. applies tariffs based on individual products, India may not face major challenges since Indian and U.S. exports do not directly compete.He gave an example: “If the U.S. imposes high tariffs on Indian avocados in response to India’s tariffs, it won’t affect India, as India does not export avocados.”
