President Trump's 26% tariffs on Indian goods have taken effect, impacting various sectors. While India anticipates a minor GDP hit and emphasizes domestic resilience, certain industries like electronics and textiles may benefit from the tariffs imposed on competitors. India's agricultural exports are expected to remain stable, potentially gaining a competitive edge.
Benchmark indices Nifty50 and Sensex ticked lower on April 9, 2025, tracking a global sell-off amid rising trade tensions. The BSE Sensex declined 403 points, or 0.54%, to 73,823, while the Nifty50 dropped 146 points, or 0.65%, to 22,389 around 9:30 am.
Source: The Economic Times
Commerce Minister Piyush Goyal calls the ongoing tariff war a "lifetime opportunity" for India, emphasizing its potential to reshape global trade. India stands to benefit from shifts in supply chains and growing exports, particularly in electronics, textiles, and engineering goods.
While the world is tense over a fast-escalating tariff war, it may well have thrown up “an opportunity of a lifetime” for India, commerce and industry minister Piyush Goyal has said. The minister’s assertion that India is poised to be a winner in the evolving reorgansiation of the world trade order indicates once again that rather than any aggressive retaliation, the country would focus on the perceived relative gains.
Source: The Financial Express
Commerce Minister Piyush Goyal assured businesses that India's interests remain paramount in trade pacts. He highlighted ongoing positive trade talks with the US, aiming for India's developed nation status by 2047. Goyal also mentioned plans for Indian Institutes of Management and Foreign Trade in the UAE, emphasizing Dubai's role as a gateway to the Middle East. India's best interests will be kept in mind while inking trade pacts, Union Commerce Minister Piyush Goyal assured businesses on April 8, 2025. Speaking at the Dubai India business forum, Goyal said India is mulling to start an Indian Institute of Management and Indian Institute of Foreign Trade in the UAE. The decision to open these two premier educational institutes after the establishment of IIT must be seen as an important event illustrating India's ties.
Source: The Economic Times
Nirmala Sitharaman affirmed India's strong growth trajectory, supported by macroeconomic fundamentals and reforms, as the nation aims to become a developed economy by 2047. She highlighted the government's commitment to inclusive, sustainable, and innovation-driven growth, addressing challenges through digital initiatives and infrastructure development. India's rise to the fifth-largest economy reflects prudent policies and resilience.
Source: The Economic Times
Sanathan Textiles advanced 2.77% to Rs 393.30 after the credit rating agency ICRA revised its outlook on the long-term ratings of the company to 'positive' from 'stable'. The agency has affirmed the company’s long-term and short-term rating at '[ICRA] A and '[ICRA] A2+, respectively.
ICRA stated that the positive outlook on the rating reflects ICRAs expectations that the revenues and profit margins of the Sanathan Group are likely to improve, going forward, led by the commercialisation of a new plant by the end of Q1 FY2026.
Source: The Business Standard
The latest survey of the global textile and garment manufacturing sector by the International Textile Manufacturers Federation (ITMF) gives a mixed picture for the industry in 2025 and sees a “slight deterioration” in trade after a steady recovery since November 2023. The results of the ITMF survey were conducted in March 2025 – shortly before the recent imposition of US tariffs on textile manufacturing hubs.
Source: Eco Textiles
While the direct impact of reciprocal tariffs on India may be limited, the secondary effect of excess supply entering the Indian market—stemming from regional imbalances caused by US reciprocal tariffs—could affect realisations in sectors such as chemicals, textiles, steel, and industrial machinery, according to the India Ratings and Research (Ind-Ra), a Fitch group company.
Furthermore, the uncertainty on eventual tariffs and the slowing global growth are likely to keep corporates cautious on their investment plans even if there are short-term opportunities. Consequently, monetary and fiscal policies may have to be supportive of growth. Amid the macroeconomic turbulence, the impact on GDP growth may be different than Ind-Ra’s initial assessment of 10 basis points (bps) in FY26, as per a report by Ind-Ra.
Source: Fibre2fashion
Vietnam, a major competitor of India, offers zero duties on all US imports, compared to India's 26% tariffs and Vietnam's 46% additional duties. Similarly, Bangladesh, which competes with India in the global textile market, may also provide duty concessions to the US to offset the impact of US tariffs. The Vietnamese offer has been made by Communist Party Chief Lam and both he and President Donald Trump also had a telephonic conversation. Trump in his Truth Social account described the talks as “very productive”.
While other countries have also offered to negotiate with the US, India has a headstart with all of them with the BTA. The negotiations are progressing fast to conclude the first tranche of the deal by fall of 2025.
Source: The Financial Express
Ministers in the European Commission’s Foreign Affairs Council (Trade) recently discussed the European Union’s (EU) trade ties with the United States and explored the potential for negotiating mutually acceptable solutions, which remains the EU’s preferred approach.
They also discussed the possibility of further proportionate countermeasures against the US reciprocal tariffs, if needed, an official release said.
“The EU deeply regrets the new US tariffs and remains committed to dialogue, seeking a negotiated solution acceptable for both sides. Today’s Council shows the member states are united and determined to defend interests of citizens and businesses alike,” said Michal Baranowski, undersecretary of state at the ministry of economic development and technology of Poland, responsible for Trade.
Source: Fibre2fashion
President Donald Trump is set to impose an astounding 104% in levies across all Chinese imports on April 9, 2025, White House Press Secretary Karoline Leavitt announced on April 8, 2025. This comes on top of Chinese tariffs that were in place prior to Trump’s second term.
China was already set to see tariffs increase by 34% on April 9, 2025, as part of Trump’s “reciprocal” tariffs package. But the president tacked on another 50% after Beijing didn’t back off on its promise to impose 34% retaliatory tariffs on US goods by noon April 8, 2025, adding an additional 84% in duties.
Source: CNN News
