Trump's announcement, made on his social media platform Truth Social, came days after he announced a 25 per cent reciprocal tariff on India and an unspecified penalty for importing oil from Russia.
Indian exports to the US are projected to decline by nearly 30 per cent, from USD 86.5 billion in 2024-25 to about USD 60.6 billion in 2025-26, as the new 25 per cent reciprocal tariffs come into effect, according to Global Trade Research Initiative (GTRI).
Indian shrimp exporters will face a new, unprecedented challenge in US markets after the imposition of reciprocal tariffs on India, said Rahul Guha, Senior Director at Crisil Ratings.
India's reliance on domestic consumption rather than exports is a key strength in navigating the recently imposed reciprocal tariff, said Madan Sabnavis, Chief Economist at Bank of Baroda.
US stock markets faced heavy selling pressure on Friday (local US time) after President Donald Trump implemented fresh reciprocal tariffs on 70 countries, including India.
Experts from across Indian industries have expressed confidence in the resilience of the Indian economy amid the US President Donald Trump's decision to impose a 25 per cent tariff on Indian goods, describing the move as impactful in the short term but unlikely to dent India's long-term econ
United States President Donald Trump has signed the fresh executive order imposing revised tariffs for 70 countries, including India and Pakistan in a move that is expected to further strain global trade relations.
Bangladesh secured a 20% U.S. tariff rate, protecting its key apparel sector after complex talks. The deal includes buying U.S. goods like wheat and planes, avoiding a 35% tariff. Officials say it boosts Bangladesh's trade ties, economic strength, and access to the U.S. market.
The US administration has, in a way, adopted a flexible trade strategy by offering reduced tariffs to countries that pledge reciprocal benefits such as increased purchases of US goods, removal of trade barriers, or investment in American industries.
The government told the Parliament on Thursday that US President Donald Trump has announced a reciprocal tariff on Indian goods, and it is examining the impact of the recent events and will take all necessary steps to safeguard national interest.
While some trade and industry leaders warned of short-term disruptions, others expressed confidence that India's strong manufacturing base, especially in sectors such as pharmaceuticals and medical equipment, would help it withstand the impact and forge new trade partnerships.
Industry association FICCI on Wednesday expressed disappointment over US President Donald Trump's decision to impose a 25 per cent tariff on Indian goods and said the move is unfortunate and will have a clear bearing on India's exports.