Synopsis
New Delhi, Feb 25 (NationPress) The Indian government has set up a high-level committee to review tariff relief on imports from the US, with a report due by March 15, ahead of US reciprocal tariffs set for April 2.Key Takeaways
- High-level committee formed to assess tariff relief.
- Report submission deadline is March 15.
- Tariffs currently range from 15% to 80%.
- Recommendations will be submitted to the Prime Minister’s Office.
- Minimal impact expected on Indian industries.
New Delhi, Feb 25 (NationPress) With the United States gearing up to enforce reciprocal tariffs on trading nations by April 2, the Indian government has established a high-level committee tasked with evaluating tariff relief for imports from the US.
This panel, created under the Union Commerce Ministry, is expected to present its findings by March 15. The finalized report will be delivered to both the Ministry of Commerce and the Ministry of Finance.
Sources familiar with the situation indicate that the government review will examine tariffs currently set between 15–20 percent, 50–70 percent, and 70–80 percent, and assess if adjustments could be made based on the 8-digit code that identifies specific products for customs purposes.
The committee is evaluating the potential for tariff reductions and is responsible for recommending the most effective course of action.
Its mandate includes a thorough examination of imported goods and suggestions for tariff adjustments.
After the committee submits its recommendations, the final decision regarding tariff relief will be reviewed by the Prime Minister’s Office before being put into effect, as reported. India has already been recognized as being extremely responsive to the perception of imposing high tariffs on foreign products.
The committee's findings will play a vital role in shaping India’s reaction to the proposed US tariffs.
In the Union Budget 2025-26, India reduced duties on bourbon whisky from 150 percent to 100 percent and lowered tariffs on imports such as fish hydrolysate, scrap materials, satellite equipment, ethernet switches, and high-end motorcycles.
On another note, India is unlikely to face significant short-term repercussions from the US tariff on semiconductors, as it does not significantly export chips to the US.
Domestic automobile manufacturers are also expected to experience minimal impact from the US reciprocal tariffs since these companies primarily sell their products in the rapidly expanding Indian market.
Additionally, the US tariffs affecting the steel sector are not anticipated to significantly impact India, as only 2 percent of the country’s total finished steel exports during the first nine months of this fiscal year were directed to the US, according to a Crisil Intelligence report.
