New Delhi: a potential India-United States Commercial Agreement will iron the impact of Trump ratesaccording to a report by Nirmal Bang Equities.
The report stated that as the United States, under President Donald Trump, continues to impose tariffs on global trade, India also feels the pressure. However, the Indian government is taking measures to address the challenges raised by these rates.
He said: “India is not immune to tariffs, but it will work around it … A possible commercial agreement of United India-United States can eventually solve some of the problems related to rates and access to the market on both sides.”
The report stressed that Trump has announced that India could soon face reciprocal tariffs, with an official decision that is expected on April 2. The United States has already imposed a 25 percent rate on steel and aluminum imports, but these metals represent less than two percent of Indian exports to the United States, which limits the direct impact.
However, the greatest concern is the possibility of tariffs on other key Indian exports, including electronics (such as smartphones), cars, gems and jewels, textiles, chemicals and seafood.
While some chemical exports could be affected, it is unlikely that pharmaceutical products in front of significant rates, since the United States government considers them essential.
The report mentioned that in the worst case, about 30 percent of exports of merchandise in India to the United States, which amount to around USD 25 billion, could be affected.
One of the key areas where there are commercial imbalances between India and the United States is in the agricultural sector. The tariff differential between the two countries is the highest for agricultural products.
However, given that agricultural assets do not constitute a significant portion of India’s exports to the US, the impact on this sector can be limited.
In response to tariff challenges, India is actively involved with the United States to find solutions. Measures have been introduced in the 2025 Union Budget to relieve Commercial tensions.
For example, India has reduced tariffs on motorcycles and alcoholic beverages, showing the will to make adjustments. In addition, India has committed to defense purchases of the United States and is exploring oil imports as part of its strategy to strengthen commercial ties.
Looking towards the future, a possible United India-United States commercial agreement could help solve some of these concerns related to the rate and improve market access to both countries. Until then, India focuses on minimizing interruptions and ensuring that its exports remain competitive despite the changing commercial panorama.