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.
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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.
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 is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape.
Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include:
Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies.
Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at:
Mint
CNBC-TV18
This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles.
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