On April 2, 2025, U.S. President Trump declared a national emergency over “unfair trade.” Washington imposed reciprocal tariffs. India initially faced 26% duties. But by early July, India was dropped from new tariff notifications. Instead, leaders signaled a forthcoming “mini trade deal.” This shift eased immediate threat and opened negotiation space.

BulletsIn

• Trump’s April tariff actions sparked new regime on global trade
• India originally included in 26% reciprocal tariff list; key sectors targeted
• China hit with 145% tariff, later eased to 30% in May by mutual rollback
• India excluded from August 1 tariffs after negotiation window
• Trump tweeted a “very big deal” with India is imminent; mini trade deal discussions underway
• India seeks export duty relief; U.S. wants greater market access, especially industrial goods
• Agriculture remains India’s red line; pharma exposure high since US buys 40% generics from India
• U.S. signaled possible 50% copper and up to 200% pharma tariffs—raising alarm
• RBI cut growth forecast to 6.5%; finance ministry warns of 0.2–0.5% GDP hit due to tariffs
• India’s economy shows resilience via Make in India, PLI, supply chain partnerships