No Exemptions For India Yet As New Delhi Braces For Trump’s Reciprocal Tariffs From April 2: Report

With just two days remaining before President Donald Trump's reciprocal tariffs are set to come into effect, India and the United States have agreed to finalise a portion of their bilateral trade deal before the end of the year.

However, there has reportedly been no indication from either side of any exemptions on tariffs for India.

Photo Credit: PTI

India is expected to be hit by a fresh wave of punitive import tariffs from the US beginning on April 2.

The two nations, currently engaged in trade discussions in New Delhi, are working towards finalising the initial phase of a trade agreement by autumn 2025, according to news agency AFP.

This development comes as India braces for potential setbacks to its exports, with the Trump administration's tariff policy threatening to further strain trade relations.

In addition, the United States' decision to impose a 25 per cent tariff on countries purchasing oil from Venezuela is also expected to impact India, which has been a regular importer of crude oil from the Latin American nation.

What have the US and India discussed?

New Delhi and Washington have "broadly come to an understanding on the next steps towards a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA), to finalise its first tranche by fall 2025," India's commerce ministry said in a statement issued late on Saturday.

Representatives from both countries "exchanged views on deepening bilateral cooperation in priority areas including increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration".

However, the statement made no mention of any immediate action to address these barriers before Tuesday, when the US is scheduled to impose its new tariffs on trading partners globally.

Credit rating agency India Ratings and Research has estimated that the proposed tariffs could lead to a reduction of up to $7.3 billion in India's exports to the United States in the next financial year.

India's response to Trump's reciprocal tariff

Over the past two months, India has sought to ease trade tensions with Washington by lowering tariffs on selected goods, including high-end motorbikes and bourbon whiskey.

Ahead of this week's trade talks, Indian media had speculated that the government might offer to eliminate levies on online services such as advertising.

Reports also suggested that New Delhi was prepared to reduce tariffs on automobiles, electronics, and medical services.