It is 26% again: White House releases new doc with new tariff rates

The White House document released on Friday revealed that the reciprocal tariffs imposed by the Trump administration have undergone revisions for at least 14 countries, including India. Initially, India's tariff rate was indicated at 27%, contrary to the previously mentioned 26% during Trump's announcement on April 2. However, the most recent annex document indicates that the tariffs have now been adjusted to 26%.

On Thursday, a review of the published data conducted by Bloomberg revealed discrepancies in the future reciprocal tariff rates listed in a White House annex compared to the charts presented during President Donald Trump's announcement of the "Liberation Day" tariffs in the Rose Garden.

In the annex document, India's rate was stated as 27% rather than the previously mentioned 26%. Similarly, South Korea's rate was at 26% instead of 25%. Other countries with varying rates included Botswana, Cameroon, Malawi, Nicaragua, Norway, Pakistan, the Philippines, Serbia, South Africa, Thailand, Vanuatu, and the Falkland Islands.

According to the executive order enforcing Trump's reciprocal tariff policy, all US trading partners were subject to a 10% global tariff starting on April 5. Only the countries specified in the annex would see their tariffs increased to the new rates.

It is worth mentioning that certain overseas territories of larger nations, such as Reunion (which initially had a tariff of 37 per cent) and other territories like Saint Pierre and Miquelon and Norfolk Island, were not included in the official annex.

During the announcement of tariffs at the White House, Trump emphasized that the tariff is a key component of his administration's plan to tackle trade imbalances. He highlighted the issue of India imposing high import duties on American goods and reiterated the US's goal of decreasing the trade deficit while promoting domestic manufacturing.

Trump also mentioned that Prime Minister Narendra Modi is a valuable ally but expressed dissatisfaction with the treatment the US has received, stating that India has not been meeting their expectations in terms of trade relations.

Trump's tariff war did not emerge suddenly. Trump has held a steadfast opposition to free trade for forty years, making it a core political belief. This stance against globalization has been a consistent theme throughout his presidential campaigns in 2016, 2020, and 2024.

The US's strategy towards implementing reciprocal tariffs is centered on achieving zero bilateral trade deficits with each trading partner. Tariffs are applied within a range of 0% to 99%, with average rates of 20% and 41% both unweighted and import-weighted, respectively. According to a report by Bloomberg, the US has consistently faced current account deficits for the past fifty years, posing a challenge to conventional trade theories that anticipate natural trade equilibrium over time.

India's response

The Ministry of Commerce and Trade on Thursday responded to the recent action by the US on Liberation Day by expressing their commitment to maintaining communication with US officials. The ministry said it is actively engaging with stakeholders, including Indian industry and exporters, to gather feedback on the impact of tariffs and assess the current situation. 

"Keeping in view the vision of Viksit Bharat, the Department is engaged with all stakeholders, including Indian industry and exporters, taking feedback of their assessment of the tariffs and assessing the situation. The Department is also studying the opportunities that may arise due to this new development in the US trade policy," said the ministry in the statement.