GTRI analysis shows U.S. tariffs may have limited impact on India

A new analysis by the Global Trade Research Initiative (GTRI) suggests that U.S. reciprocal tariffs may not significantly impact India. This is due to the differing export profiles of the two countries, with India not exporting many goods that would face high tariffs. U.S. President Donald Trump announced that India will increase purchases of oil, gas, and military hardware from the U.S. to reduce the trade deficit. However, he confirmed that India will not be exempt from reciprocal tariffs, with details expected in April. Currently, the U.S. has a trade surplus with India, with bilateral trade reaching $119.71 billion in 2023-24. The U.S. average tariff on agricultural goods is 5%, while India's is significantly higher at 39%.