India’s top officials said they will continue to cut import taxes as the government looks to work around US President Donald Trump’s plan to impose reciprocal tariffs on trading partners.Weeks after she unveiled sweeping cuts to duties on imports from textiles to motorcycles,

Shares of Indian pharmaceutical companies slid 2% on Wednesday after U.S. President Donald Trump said he intends to impose tariffs of about 25% or higher on pharma imports.

As two-way trade expands, India’s surplus is growing. President Trump is expected to press Prime Minister Narendra Modi to lower tariffs.

Here’s what you need to know about reciprocal tariffs and who might be impacted by Trump’s plan. Reciprocal tariffs refer to tariffs—the taxes charged on imported goods—the U.S. government plans to levy against global trading partners that are equal to the existing tariffs foreign countries have set against American goods.

In starting a process to impose reciprocal tariffs on American trading partners, the White House is sowing uncertainty and risking inflation.

U.S. President Donald Trump's threat to impose reciprocal tariffs from early April is feeding anxiety in India's export sectors from autos to agriculture, with Citi Research analysts estimating potential losses at about $7 billion a year.

US President Donald Trump outlined a new trade policy focused on fairness and reciprocity and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.

India's tariffs on US exports rose from 11.59% in 2018 to a peak of 15.30% in 2022. A potential 15% US retaliatory tariff could decrease Indian exports by 3%, according to SBI Research, which highlights the evolving trade dynamics between the two nations.