Mos Finance Pankaj Chaudhary on Trump’s Reciprocal Tariff: “For Trump, It’s US First; For PM Modi, It’s India First”
New Delhi: India plans to carefully examine the effects of new U.S. reciprocal tariffs, announced Union Minister of State for Finance Pankaj Chaudhary on Thursday. The statement follows the U.S. imposing a 27% tariff on Indian exports, part of a broader trade policy shift.
Speaking to journalists in New Delhi, Chaudhary remarked, “Donald Trump prioritizes America First, just as Modi ji focuses on India First. We’ll analyze the situation, assess its implications, and determine our response.”
Sanjay Nayar, president of industry group ASSOCHAM, earlier noted that India might face less disruption compared to other nations. “The tariff seems high, but it’s milder than those on Southeast Asian countries. Intra-Asia trade and supply chains will likely shift over time. With pharma exempt, India’s hit is limited, but our industries must boost efficiency and consider opening our market more to the U.S.,” Nayar explained.
VIDEO | Union Minister of State for Finance Pankaj Chaudhary (@mppchaudhary) on reciprocal tariff announced by US President Donald Trump, says, "For Donald Trump it is 'US First' and for PM Modi it is 'India First'. We will analyse it and see how to tackle it."… pic.twitter.com/8W0a4UFfhE
— Press Trust of India (@PTI_News) April 3, 2025
The tariffs stem from an April 2 announcement by U.S. President Donald Trump, who introduced widespread levies targeting global trade partners. In February, after beginning his second term, Trump unveiled a policy rooted in fairness and reciprocity, vowing to mirror tariffs imposed on U.S. goods. He argued the move would counter unfair practices like subsidies and non-monetary barriers, urging other nations to lower their own tariffs.
The U.S. tariffs vary by country: China faces 34%, the European Union 20%, Vietnam 46%, Taiwan 32%, Japan 24%, India 26%, the UK 10%, Bangladesh 37%, Pakistan 29%, Sri Lanka 44%, and Israel 17%. For India, the 27% rate applies to steel, aluminum, and auto-related goods, while pharmaceuticals, semiconductors, copper, and energy products remain exempt.
Experts suggest India’s manufacturing sector faces a mixed outlook. The lower tariff rate compared to China, Thailand, and Vietnam could give Indian exports a competitive edge, though the 27% levy still poses challenges for other goods.