US Tariff Policy and India
Reciprocal Tariffs and Sector Impacts
The Trump administration's "reciprocal tariff" framework argued that the US faces higher tariffs in foreign markets than its own average applied rate, and therefore imposed retaliatory tariffs on major trading partners. India, with an average applied MFN tariff of approximately 14% (more than double the US average of ~3%), was a primary target.
Sectoral impacts on Indian exports were significant: steel and aluminium products (already subject to Section 232 tariffs since 2018) faced 50% combined duties; shrimp/seafood faced effective tariffs of 58–60% when anti-dumping duties were included; textiles and apparel faced the new 25% baseline reciprocal tariff. Indian exports to the US fell sharply in affected categories between May and October 2025.
- US Section 232 tariffs (steel and aluminium): first imposed March 2018 under national security authority; rate 25% (steel), 10% (aluminium)
- US reciprocal tariffs on India (2025): 25% baseline, rising to 50% for some categories
- India's average MFN applied tariff: ~14% (vs US ~3%) — the gap cited by the US as justification
- Indian goods exports to US fell ~28.5% (May–October 2025)
- Steel/aluminium exports affected: ~$5 billion annually
- Shrimp: effective tariff 58–60%; Marine Products Export Development Authority reported 100% increase in seafood exports to Vietnam in response
- India-US bilateral trade (goods): approximately $130–140 billion in goods (2024–25)
● Tracked since February 03, 2026 · last seen May 23, 2026 · updates as the daily brief publishes