President Trump has a material temperament it is known all over the world and he is not beyond holding out threats at various points of time. So uh this is part for the course I think but uh the ground reality is that there is no way India can uh negotiate uh not negotiate uh because this 18% tariff also which was set to kick in after the interim trade agreement had been signed uh there is no way that India will go back to that position. So renegotiation has to be there.Whether President Trump agrees to it ...

Core Insights - The U.S. has imposed an additional 25% tariff on Indian goods, leading to a potential total tariff of 50%, significantly impacting India's exports to the U.S. [1][2] - India's exports to the U.S. accounted for nearly 20% of its total goods exports, which reached approximately $434 billion in the fiscal year ending March 2025 [2][3] - The tariffs are expected to reduce India's GDP growth from a forecasted 7% to around 6% for the current and next year [3] Engineering Goods - Engineering goods are India's largest exports to the U.S., totaling nearly $117 billion, with about $19.16 billion (16%) sold to the U.S. [4] - The sector is already facing a 50% tariff on steel exports, which could worsen the outlook for other engineering segments [5] Gems and Jewelry - The gems and jewelry sector contributes 7% to India's GDP and employs around 5 million workers, with 33% of its exports directed to the U.S. [6] - Higher tariffs are seen as an additional burden on the sector, prompting calls for government support [7] Textiles and Apparels - The textiles sector employs about 45 million workers and also faces significant challenges due to the new tariffs, with 34% of its exports going to the U.S. [8][9] - The sector's competitiveness is at risk as it will no longer enjoy a significant duty differential advantage compared to other countries [9] Electronics - The electronics sector is highly exposed to U.S. tariffs, with 38% of its exports going to the U.S. [10] - India has recently become the top exporter of smartphones to the U.S., with exports of electronic goods more than doubling to $2.76 billion in March 2025 [11] Pharmaceuticals - The pharmaceutical sector, which is currently exempt from tariffs, faces potential duties that could reach as high as 250% in the future [12][13] - Exports to the U.S. reached over $10.5 billion, accounting for nearly 35% of India's total pharmaceutical shipments [13] Overall Competitiveness - India's export competitiveness is likely to be eroded over time as the U.S. can source supplies from alternative locations more easily than India can diversify its exports [15][16] - Approximately 32% of India's exports to the U.S. are currently exempt from tariffs, including electronics and pharmaceuticals [17]