US President signs reciprocal-tariff order; India says it is examining the implications
US President Donald Trump signed Executive Order 14257 on 2 April 2025, imposing a 10% baseline tariff on imports from all trading partners from 5 April and higher country-specific rates from 9 April; India's Department of Commerce said on 3 April that it was carefully examining the implications.
Summary
US President Donald Trump signed Executive Order 14257 on 2 April 2025, 'Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits', declaring a national emergency under the International Emergency Economic Powers Act (IEEPA). The order imposes an additional ad valorem duty of 10% on imports from all trading partners from 12:01 a.m. eastern daylight time on 5 April 2025, and higher country-specific rates listed in its Annex I from 12:01 a.m. on 9 April 2025. In a press communique on 3 April 2025, India's Department of Commerce said it was carefully examining the implications, consulting Indian industry and exporters, and studying the opportunities that may arise. It recalled that the two leaders had announced 'Mission 500' on 13 February 2025, aiming to more than double bilateral trade to US$ 500 billion by 2030, and said talks on a Bilateral Trade Agreement were continuing.
Key facts
- Order
- US Executive Order 14257, signed 2 April 2025
- Legal basis
- IEEPA; national emergency declared
- Baseline duty
- 10% on all trading partners from 5 April 2025
- Country-specific rates
- Annex I rates from 9 April 2025
- India's response
- Department of Commerce communique, 3 April 2025
- Mission 500
- Bilateral trade target of US$ 500 billion by 2030
Practice MCQs 5 questions
Under US Executive Order 14257 of 2 April 2025, from which date did the 10% baseline tariff on imports from all trading partners apply?
Show answer
Correct answer: B — 5 April 2025
White House (EO 14257): the additional 10% ad valorem duty applies to goods entered on or after 12:01 a.m. EDT on 5 April 2025; country-specific Annex I rates apply from 9 April 2025.
Under which US law did the President declare a national emergency in the reciprocal-tariff Executive Order of 2 April 2025?
Show answer
Correct answer: A — International Emergency Economic Powers Act
White House (EO 14257): the order invokes the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act, and declares a national emergency with respect to the trade-deficit threat.
'Mission 500', recalled in India's official response to the US reciprocal tariffs, aims to raise India-US bilateral trade to US$ 500 billion by:
Show answer
Correct answer: C — 2030
PIB (Commerce): the leaders announced 'Mission 500' on 13 February 2025, aiming to more than double bilateral trade to US$ 500 billion by 2030.
Under US Executive Order 14257 of 2 April 2025, the higher country-specific reciprocal tariff rates listed in Annex I were to apply from:
Show answer
Correct answer: D — 12:01 a.m. EDT, 9 April 2025
Executive Order 14257 (White House): the 10% baseline applied from 12:01 a.m. EDT on 5 April 2025, and the country-specific Annex I rates from 12:01 a.m. EDT on 9 April 2025.
Consider the following goods with respect to the reciprocal tariffs under US Executive Order 14257: 1. Steel and aluminium articles already subject to Section 232 duties 2. Copper, pharmaceuticals and semiconductors listed in Annex II 3. All agricultural products Which of the above are exempted from the reciprocal tariffs by the order?
Show answer
Correct answer: A — 1 and 2 only
Executive Order 14257: exempted goods include steel and aluminium articles and automobiles subject to Section 232 duties of the Trade Expansion Act of 1962, and Annex II products such as copper, pharmaceuticals, semiconductors, lumber, certain critical minerals and energy. The order has no blanket exemption for agricultural products.