Additional And Reciprocal Tariffs Imposed By The US And The Impact On India

Introduction

On 02 April 2025, the President of the United States issued Executive Order 14257 to impose universal ad valorem tariff @10% on all goods imported into the US, from all its trading partners to rebalance global trade flow. This universal 10% tariff has taken effect from 05 April 2025.

Further, imports from more than 50 countries, including India, would be subjected to higher country-specific reciprocal tariffs on all goods with effect from 09 April 2025, irrespective of existing bilateral or multilateral trade agreements. China would suffer a 34% tariff whereas India will face tariff @26%.

Additional and reciprocal tariff is imposed under HTSUS 9903 of Chapter 99 [Temporary Modification]. All goods entered for consumption or withdrawn from warehouses after the effective date would be subjected to a higher tariff. Other applicable tariffs (e.g., antidumping/ countervailing duties, duties imposed under Section 301 of the Trade Act of 1974, etc.) would