India is evaluating the effects of the 26% retaliatory tariffs imposed by the United States, but a senior government official stated on Thursday that the development is a "mixed bag" rather than a setback. The commerce ministry is closely analyzing the situation and exploring potential responses, the official told news agency PTI.

The new tariff measures, announced by US President Donald Trump, introduce a blanket 10% duty on all imports entering the US from April 5, with an additional 16% set to take effect on April 10. These duties are part of a broader trade strategy targeting multiple nations, including India.

According to the official, while the impact of the higher tariffs is under assessment, there is a possibility that the US may consider reducing them if India takes steps to address certain trade concerns. Ongoing discussions between the two countries over a bilateral trade agreement are expected to progress, with both sides aiming to conclude the initial phase of negotiations by September or October this year.

"It is not a setback, but rather a mixed outcome for India," the official remarked, as reported by PTI, suggesting that while the tariff hike presents challenges, it also provides room for diplomatic engagement.

Trump defended the decision by pointing to India's high tariffs on American goods. When announcing the new trade measures, he referred to the 26% tariff as a "discounted" rate for India.

Speaking from the Rose Garden at the White House on Wednesday, Trump described the move as a historic milestone for American industry.

"This is a day of economic revival, a turning point. April 2, 2025, will go down in history as the moment America reclaimed its economic strength, reasserted control over its trade policies, and took a major step toward prosperity," he declared.

As part of his address, Trump displayed a chart illustrating tariff rates imposed by various countries on American exports, including India, China, the UK, and the European Union. According to the data he presented, India levies a 52% tariff, factoring in trade barriers and currency policies. In response, the US has implemented a 26% duty.

Trump also commented on India's trade practices and his recent conversations with the Indian prime minister.

"India is tough—very tough. The prime minister just visited. He's a great friend, but I told him, ‘You're my friend, but this isn’t fair. You charge us 52%,’" Trump stated.