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Even if one does not pay much attention to the  oft-repeated quote, “April is the cruelest month,” April 2 marks the deadline set by U.S. President Donald Trump to impose reciprocal tariffs. On April 1, stock  markets reflected investor anxiety, with the BSE closing 1.8% lower amid uncertainty.

Though the United States is no longer a British colony, President Trump dubbed April 2 “Liberation Day,” suggesting that rolling back imposed tariffs would free the U.S. from dependence on foreign goods. “All countries will be affected,” President Trump stated, making it clear that nations hoping for exemptions would be disappointed.

This presents a critical point for discussion: Trump appears to be leveraging tariffs for geopolitical purposes. Never one to mince words, President Trump explicitly stated that a secondary tariff of 25% to 50% would be imposed on buyers of Russian oil if he believed Moscow was obstructing his efforts to end the war in Ukraine. This move could also impact India.

The outlook does not seem promising for “Atmanirbhar Bharat.” The U.S. President has signed a proclamation imposing a 25% tariff on automobiles and their components. With 200 trading partners (including countries, territories, and regional associations) and approximately 12,500 tariff categories, the U.S. administration may find managing reciprocal tariffs increasingly challenging.

Having been labeled the “tariff king” by Trump, India faces a difficult situation. The Office of the United States Trade Representative has released the 2025 National Trade Estimate Report, outlining the trade barriers faced by U.S. exports. According to the report, in 2023, India’s Most Favoured Nation (MFN) applied tariff rate was 17%, the highest among major economies. The report also highlights various non-tariff barriers and details how they affect multiple sectors of the economy.

Considering the significant gap between India’s World Trade Organization (WTO) bound and applied tariff rates, the report states that “India has considerable flexibility to alter tariff rates for both agricultural and non-agricultural products at any time, creating tremendous uncertainty.”

India and the U.S. have recently concluded discussions on the framework of a trade deal. Given the unpredictability of Trump’s tariff measures, India must focus on finalizing a Bilateral Trade Agreement. Additionally, India should work toward concluding trade agreements with the European Union and the United Kingdom. Historically, India has thrived when it embraced free trade and globalization. Periods of economic isolation have not yielded positive outcomes. Moving forward, India must continue on the path of economic openness.