U.S. reciprocal tariffs could increase trade risks for India, experts warn

India may face increased risks from potential U.S. reciprocal tariffs, which could exceed 10 percentage points. This change comes as President Trump ordered his administration to consider tariffs aimed at correcting trade imbalances with various countries, including India. Trump's announcement highlights that countries like India impose higher tariffs on U.S. goods. He stated that the U.S. will charge equivalent tariffs in response to those imposed by other nations. This could significantly impact sectors such as defense and energy. Economists from major banks have identified India as particularly vulnerable to these tariff changes. They predict that India could see tariff hikes of 4 to 6 percentage points if the U.S. seeks to reduce its trade deficit.