The Union Commerce Ministry said on Thursday that it is closely analyzing the ramifications of the tariff measures made by US President Donald Trump.

In an Executive Order on Reciprocal Tariffs, the President of the United States imposed extra ad valorem charges on imports from all trade partners, ranging from 10% to 50%. The 10% baseline tax will go into effect on April 5, 2025, while the other extra ad-valorem duties applicable to each nation will go into effect on April 9, 2025.

In a news release, the ministry clarified that the extra levy on India under Annex I of the Executive Order is sixteen percent. Additionally, it is interacting with all parties involved, including exporters and Indian industry, gathering their opinions on the levies, and evaluating the situation. The prospects that might result from this recent change in US trade policy are also being researched by the Commerce Department.

Additionally, it said that the US and Indian trade teams are now in talks to quickly finalize a multi-sectoral, mutually advantageous Bilateral Trade Agreement (BTA). The goal of the negotiations is to increase commerce, investments, and technology transfers between the two countries. It said, “We are still in communication with the Trump Administration regarding these matters and anticipate advancing them in the days ahead.”