India's first reaction on Donald Trump's 26% reciprocal tariffs: 'It's mixed bag, not setback…'

India has termed US President Donald Trump ’s announcement of 26% reciprocal tariffs a ‘mixed bag’ and not a ‘setback’. The commerce ministry is assessing the 26% reciprocal tariffs imposed by the US on India, a senior government official said on Thursday. The official said that a universal 10% tariff will be implemented on all imports into the US from April 5, with an additional 16% taking effect from April 10.

"The ministry is analysing the impact of the announced tariffs," the official was quoted as saying by PTI. The official added that provisions exist for the Donald Trump administration to consider duty reductions for countries that address US concerns.

India and the US are currently in discussions regarding a bilateral trade agreement, with both nations aiming to conclude the initial phase by fall (September-October) this year.

"It is a mixed bag and not a setback for India," the official remarked.

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Trump highlighted India's high tariffs on American products whilst announcing across-the-board reciprocal tariffs, implementing a 26% "discounted" reciprocal tariff on India.

"This is Liberation Day , a long-awaited moment. 2nd April 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again. We are going to make it wealthy, good, and wealthy," Trump declared on Wednesday from the White House Rose Garden whilst announcing the anticipated reciprocal tariffs.

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During the announcement, he displayed a chart showing tariffs imposed by various countries including India, China, the UK, and the European Union, alongside the new reciprocal tariffs these nations would face.

The chart revealed India's 52 per cent tariffs, including currency manipulation and trade barriers, against which America would now impose a discounted reciprocal tariff of 26 per cent.

"India, very, very tough. Very, very tough. The prime minister just left. He's a great friend of mine, but I said, you're a friend of mine, but you're not treating us right. They charge us 52 per cent...," he said.