04042025-TTB-01.qxd 4/4/2025 LS NOD TO PREZ RULE IN MANIPUR NATION /thetribunechd 12:10 AM Page 1 13 CHANDIGARH | GURUGRAM | JALANDHAR | BATHINDA | VOL. 145 NO. 92 | 20 PAGES | ~5.00 | REGD. NO. CHD/0006/2024-2026 ESTABLISHED IN 1881  DELHI friday | 4 april 2025 /thetribunechd www.tribuneindia.com Trump slaps addl 27% tariffs on Indian imports, 75% of commodities to be hit Cautious New Delhi assesses fallout | Explores options to edge out nations facing higher duty Tribune News Service New Delhi, April 3 US President Donald Trump has slapped sweeping reciprocal tariffs ranging from 10 to 49 per cent on imports from major trading partners, including India, escalating tensions with allies and adversaries alike. Trump imposed a steep 27 per cent tariff on all goods, barring pharmaceuticals, semiconductors, energy and certain minerals not available in the US, that are imported from India, calling the country “one of the worst offenders of unfair trade practices”. The goods that were exempt make up for just over 25 per cent of the total exports from India to the US. Reacting cautiously, India said it was “carefully examining the implications”. It fears a decline in the trade of electronics, gems, jewellery and fisheries. On the positive side, it looks to explore opportunities to gain wider access to the US markets as an alternative to China and other competing Asian nations, using the tariff differential to its advantage. A White House official said the baseline duty of 10 per cent would be effective on India from April 5 and an additional 27 per cent from April 9. The 27 per cent duty would be over and above any continued on page 8 edit: The tariff challenge EXEMPTED GOODS Pharma | Semiconductors | Energy & minerals not available in the US MOST AFFECTED Electronics | Jewellery | Fisheries $129.2 BILLION current worth of India-US trade 34% ON CHINA Trump has slapped reciprocal tariffs ranging from 10 to 49% on trading partners. China faces 34% tariffs, Bangladesh 37%, Sri Lanka 44% and Pakistan 29%. STOCKS, DOLLAR SINK Stock indexes tumbled, with the S&P 500 down 4%, Dow 3.4% & Nasdaq 5.1% in morning trade, as also US dollar and oil prices. Sensex dropped 322.08 points to close at 76,295.36. US President Donald Trump holds a chart showing new tariffs at the White House. AP/PTI Reflects govt failure at negotiating table: Oppn Tribune News Service New Delhi, April 3 Opposition parties on Thursday attacked Prime Minister Narendra Modi over imposition of 27 per cent reciprocal tariffs on India by the US. Congress chief Mallikarjun Kharge said the imposition of additional tariffs showed the US leadership was in the hands of businessmen and “our customer” fell into their trap. Taking a potshot at the PM, Kharge said, “Their friendship of hugging, laughing, ‘once again Trump’ slogan shows that America is a businessman and our customer got trapped.” Congress MP Manish Tewari said the imposition of additional tariffs was a “complete failure” of the negotiations between the Government of India and the Trump administration. “America has gone ahead and done what it wanted to do. Coupled with that, you MUST STAY ALERT ALONG LAC: RAJNATH BACK PAGE have the unfortunate situation where the visas of Indian students are being cancelled en masse. The Government of India is not raising its voice,” Tewari said. “It’s time the government develops a spine and starts standing up for Indian interests and Indian people,” Tewari said. AAP MP Raghav Chadha said while India had maintained an unwavering friendship with the US, the gesture was not reciprocated. He said the government had taken pro-US measures, but products made in India now faced a 27 per cent tariffs. TMC Rajya Sabha MP Sagarika Ghosh said the move would have adverse impact on key sectors in India like textiles and engineering as well as on fate of lakhs of people employed in these sectors. Congress MP Shashi Tharoor termed the imposition of tariffs as “disturbing” and continued on page 8 c m y b How US tariffs impact India EXPLAINER Ajay Banerjee Tribune News Service New Delhi, april 3 The reciprocal tariffs on Indian exports announced by US President Donald Trump pose a threat of trade decline in several sectors, including electronics, gems, jewellery and fisheries. On the positive side, Indian pharmaceuticals, energy products and semiconductors have escaped the Trump tariff blow. Industry body PHDCCI estimates a 0.1 per cent impact on India’s GDP , though investment banking and wealth managing company Goldman Sachs puts a higher figure. It estimates a potential decline of $15 billion (~1,27,000 crore) in Indian exports, which is about 0.4 per cent of the country’s GDP . The Trump-imposed protectionist tariff regime is the first since the 1930 US legislation called the Smoot-Hawley Tariff Act raised import duties to protect American businesses and farmers. The latest US move raises questions on continuity of the World Trade Organisation-regulated trade regime, including the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which establishes minimum standards for intellectual property protection among WTO member nations. Ashwani Mahajan, national co-convener of REUTERS Swadeshi Jagran Manch, says the WTO has lost its relevance after these tariffs. “We have been a loser in the WTO,” he stresses. WHAT LIES AHEAD For India, the early start to the bilateral trade negotiations with the US — the first round ended on March 29 — is a silver lining. Within the Government, the sentiment is to ‘negotiate and not escalate’. During Prime Minister Narendra Modi’s US visit in February, the two nations agreed to have a trade deal by October this year. India is open to cutting tariffs for US goods. Over the past few weeks, import duties have been slashed on some 8,500 industrial items, including on American bourbon whiskey and high-end motorcycles made by Harley-Davidson. India has also indicated its willingness to buy more American oil, LNG and defence equipment to narrow its bilateral trade surplus. The White House said India imposes its “own uniquely burdensome” testing and certification. “If these barriers were removed, it is estimated that US exports would increase by at least $5.3 billion annually,” it added. Ajay Sahai, director general and chief executive officer of the Federation of Indian Exporters Organisation (FIEO), wants timely conclusion of the Bilateral Trade Agreement to mitigate tariffs and provide relief to exporters. TAKING THE MAXIMUM HIT The office of the US Trade Representative (USTR) pegs the 2024 US-India bilateral trade at $129.2 billion — US exports to India totalled $41.8 billion, while it imported continued on page 8