President Donald Trump had called India a ‘big abuser’ of import duty during his presidential election campaign.
India imposes different tariffs on various US imports depending on the product category.
Relief in Budget 2025?
*According to a report by NDTV Profit, the Indian government may reduce customs duty on some expensive goods imported from the US such as:
special kind of steel, expensive motorcycles, and electronic, Finance Minister Nirmala Sitharaman may announce this in the 2025 budget on February
Trump threatens 100% tariffs
Trump said during his presidential campaign on January 27.
We will impose tariffs on foreign countries and those who want to harm us. That’s because China is a big country imposing tariffs, then there’s India, Brazil and many other countries. (But) we’re not going to let that happen again… because we’re going to put America first,
Earlier, he had threatened to impose “100 percent tariffs” on BRICS countries if they plan to replace the dollar
Recently, India has become a member of the BRICS countries.
India-US Trade: Impact of Import Duties
According to a recent analysis, India imports about 20 US products that attract a duty of more than 100 per cent. According to a report by Moneycontrol, the average tariff gap between India and the US is around 11.9 per cent. This gap is seen on more than 3,000 traded products.
India’s high tariffs on US imports
India imposes high tariffs on certain US products, such as:
- Luxury bikes – 100%
- Alcoholic beverages – 50-150%
- Agricultural products – 10-100%
- High-end electronics – 20-22%
- Automobiles – 60-100%
Relief in Budget 2025
If India-US trade tensions increase, it can have an impact on businessmen and traders of both countries. But if tariffs are reduced, luxury goods and high-end products can be cheaper in India. All eyes will be on Budget 2025 to see what decision the government takes.