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The reciprocal tariff measures imposed by the United States (US) Government under the presidency of Donald Trump have significantly reshaped the trade landscape between the US and the rest of the world, including India. Businesses involved in bilateral trade now face heightened complexity, increased costs, and regulatory uncertainties.
However, on 9 April 2025, the US announced a 90-day suspension of the reciprocal tariffs for most countries (except China). However, pursuant to China’s reaction of imposing an 84% tariff on American goods, the US has retaliated with staggering 125% ad valorem tariffs.
With the dynamics of trade changing daily, it has become critical to monitor developments closely and assess their impact in real-time.
This evolving scenario demands specialised expertise to effectively manage and mitigate tariff-related impacts. At Grant Thornton Bharat, we recognise these challenges and offer customised, comprehensive tax consulting and strategic advisory services to companies navigating this complex business environment. Our experienced team provides practical guidance related to international taxation, customs law, and trade compliance to help your company stay compliant, competitive, and financially strong despite the changing tariffs.
For India, this offers a strategic inflection point to reposition itself as a competitive manufacturing and export hub—especially in key sectors like textile/clothing, steel, aluminium, and auto parts. India now has a unique opportunity to capitalise on evolving trade patterns and supply chain shifts. It must act quickly to leverage Free Trade Agreements, scale up in priority sectors, and re-align global value chains in its favour.
These tariffs are likely to pose both challenges and opportunities for Indian exporters, influencing their competitiveness, market strategies, and long-term growth prospects.
Below are the key points that merit consideration:
Optimum utilisation of 90-day window
Restructuring supply chain
Diversification of export market to other economies
Strengthening regional trade under other FTAs (India – UAE CEPA, India – Australia ECTA etc.)
Need for innovation and product differentiation to stay relevant and competitive
An experienced team, with over 100 years of domain expertise in international tax and trade advisory
Industry-specific insights, customised for exporters, manufacturers and MNCs
Wednesday, May 28, 2025 | 3:00 PM - 4:30 PM (IST)
After years of economic crossfire, the world's two largest economies— the United States and China—have called a temporary truce, hitting the brakes on their tariff war with a 90-day pause and sweeping duty reductions.
