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US reciprocal tariffs to affect select sectors: NITI Aayog

India is well-positioned compared to Mexico, China, and Canada, which together account for 50 per cent of America’s total imports, said NITI Aayog Programme Director Pravakar Sahoo

NITI Aayog member Arvind Virmani pointed out that after the US imposed tariffs in 2018, China’s share of US imports declined. (Express Archive)

The US plan to impose reciprocal tariffs may have limited impact on India as it would select sectors only and could even create new opportunities for Indian exporters, NITI Aayog Programme Director Pravakar Sahoo said on Friday. India is well-positioned compared to Mexico, China, and Canada, which together account for 50 per cent of America’s total imports, he said.

“We are analysing the data at a highly disaggregated level… These are preliminary findings, but I can assure you that we are not going to lose out. These reciprocal tariffs will affect only a few specific sectors and, in fact, could create opportunities to expand our exports,” Sahoo said at the release of the second edition of NITI Aayog’s quarterly Trade Watch.

Meanwhile, NITI Aayog member Arvind Virmani pointed out that after the US imposed tariffs in 2018, China’s share of US imports declined. He stated that such tariffs have historically led to increased export opportunities, benefiting five countries in 2018—Taiwan, Vietnam, Thailand, Mexico, and India.

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The US has imposed a 25 per cent import duty on steel and aluminium products from March 12. It has also announced a sweeping 25 per cent tariff on completely built vehicles (CBUs) and auto parts, set to take effect on 3 April.

US President Donald Trump has declared plans to introduce reciprocal tariffs in April on key trading partners, including India. He has repeatedly argued that India imposes high tariffs on US goods. The US has already imposed similar duties on Chinese imports.

A US delegation, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, is currently in India for negotiations on a proposed bilateral trade agreement. The talks are expected to conclude on Saturday.

India and the US are aiming to finalise the first phase of the agreement by autumn 2025 (September-October). Both nations have also set a target to more than double bilateral trade to $500 billion by 2030, up from the current level of over $190 billion.

Ravi Dutta Mishra

Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More

Nizamuddin went to the US in December 2015 for a Master’s course in Computer Science, which he completed from Florida Institute of Technology in 2017. He completed his B.Tech in ECE from Jayaprakash Narayan College of Engineering, Mahbubnagar.

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