The reciprocal tariff rate on Indian goods is 26% compared to 54% (20% previously imposed + 34% announced on Wednesday) on China, 46% on Vietnam, 37% on Bangladesh, and 36% on Thailand.
The US government has announced a baseline tariff of 10% on all imports (effective April 5), with specific reciprocal tariffs on multiple countries (effective April 9). Some sectors, including pharmaceuticals, semiconductors, copper, and energy products, will remain exempt from these tariffs. The government sources also said it is ready to protect domestic industry from any possibility of dumping of goods from countries like China and Vietnam.
It is feared that with the US imposing a 54% tariff on Chinese imports, India could become a dumping ground for surplus Chinese goods. India already has a trade deficit of $100 billion with China, which exported $440 billion worth of merchandise goods to the US in 2024 and had a trade surplus of $295 billion with that country.