Trump’s Reciprocal Tariffs: How India Dodges The Bullet With Exemptions

Donald Trump’s reciprocal tariff bombshell dropped on April 2, 2025, shaking up global trade with new barriers around the U.S. economy. In this video, we explore how India’s markets flinched but bounced back, thanks to key exemptions in Trump’s plan. Unveiled in the Rose Garden, the tariffs slap a 10% baseline rate on imports from April 5, with India facing an additional 17% from April 10 — yet pharmaceuticals, copper, energy, and bullion are spared, boosting investor confidence. Steel, aluminium, and auto parts, already under 25% tariffs, dodge the new rates too. Indian exporters see opportunity, arguing these tariffs could edge out rivals like China and Vietnam. With the U.S. as India’s top export market and a hefty trade surplus making it a tariff target, the stakes are high. While PM Modi attends the BIMSTEC summit in Bangkok, India’s government scrambles to assess the fallout. Economists warn of a 10-30 basis point GDP hit, but could exemptions turn this into a win?