India faces a 26% reciprocal tariff—half of the 52% duty it levies on American imports. China, meanwhile, will see a 54% tariff in response to its 67% duty on US goods.
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US President Donald Trump announced sweeping reciprocal tariffs on America’s trading partners on April 2. Speaking from the White House Rose Garden, Trump unveiled a chart comparing tariffs imposed on US goods by various countries with the new “discounted reciprocal tariff” rates set by his administration. The board, titled “Tariffs Charged to the USA, Including Currency Manipulation and Trade Barriers,” underscored his administration’s efforts to counter perceived trade imbalances.
India faces a 26% reciprocal tariff—half of the 52% duty it levies on American imports. China, meanwhile, will see a 54% tariff in response to its 67% duty on US goods. Cambodia, a developing economy in Southeast Asia, faces the steepest tariff in the region at 49%, while Myanmar, grappling with post-earthquake recovery and civil unrest following its 2021 military coup, will serve with a 44% duty.
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LIBERATION DAY RECIPROCAL TARIFFS pic.twitter.com/ODckbUWKvO
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— The White House (@WhiteHouse) April 2, 2025
The United States Trade Representative (USTR) detailed the methodology behind the tariffs in a statement released Wednesday night. According to an analysis by Bloomberg, the formula takes a country’s trade surplus with the US, divides it by its total exports (using data from the US Census Bureau for 2024), and then halves the result to determine the tariff rate.
For instance, China’s trade surplus with the US was $295 billion last year on exports of $438 billion, yielding a 68% ratio. Dividing this by two, as per the new formula, results in a tariff rate of 34 per cent, the rate US has imposed on Beijing. The researchers used similar calculations for other major economies, including Japan, South Korea, and the European Union.
The USTR statement said that while it was technically possible to calculate tariffs based on actual trade barriers, this approach aims at curbing trade deficits.
“While individually computing the trade deficit effects of tens of thousands of tariff, regulatory, tax, and other policies in each country is complex, if not impossible, their combined effects can be estimated by computing the tariff level required to reduce bilateral trade deficits to zero,” the statement said.
Sectors such as agriculture, precious stones, chemicals, pharmaceuticals, medical devices, electricals and machinery are likely to face consequences with these tariffs on Indian products, according to media reports. However, as of now, there is no final agreement, leaving room for further discussions.
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