Overview

• US President Donald Trump plans to implement reciprocal tariffs targeting nations with trade surpluses, including India, starting April 2.
• India's exports to the US could decline by 3-3.5%, but diversification efforts and manufacturing goals may offset the impact, according to SBI Research.
• The proposed tariffs could significantly affect India's agricultural exports, which currently benefit from high domestic tariff protection.
• India is leveraging Free Trade Agreements (FTAs) and exploring alternative trade routes to strengthen its global trade position.
• The US remains a key trading partner for India, with bilateral trade exceeding $119 billion in FY24 and a merchandise trade surplus of $35.32 billion.