On 2 April 2025, the US announced reciprocal tariffs on merchandize imports from all its trading partners. This includes ‘discounted’ tariffs ranging from 11% to 50% depending upon the country from which the goods are imported and includes a tariff of 26% on goods from India. The tariffs were announced under the provisions of International Emergency Economic Powers Act (IEEPA) which gives powers to the US President to inter alia impose duties under the National Security exception. These tariffs are in addition to the already existing duties, fees, taxes, exactions, or charges applicable to imported articles, subject to limited exceptions.
The new tariffs are set to come into effect in two tranches – Baseline 10% tariff on all countries from 5th April 2025, while the balance being effective from 9th April 2025.
The Tariffs are set to be imposed on almost all goods except for goods which already suffer duties under Sec 232 of the Trade Expansion Act, 1962 like steel, aluminium and their derivatives, automobiles and their parts and certain other listed goods on which there are ongoing investigations for duty imposition (like copper, lumber articles) or plans for such an imposition (like pharmaceuticals, semiconductors, chips, electronics, etc.). The additional tariffs will be applicable only on the non-US content of the goods, subject to certain conditions.
The imposition will have huge implications for the global trade and in particular Indian businesses having export exposure of the US.
The webinar by Lakshmikumaran & Sridharan Attorneys (LKS) will inter-alia cover the following:
* Analysis of Reciprocal Tariffs on India and other key trading partners of the US
* Dissecting the calculation methodology and its basis
* Implications for Indian business and sectors impacted – Challenges and opportunities
* Way forward
Speaker
V. Lakshmikumaran
(Founder and Managing Partner, LKS)