The Indian government is analyzing the 26 percent tariffs imposed by the U.S. as part of a broader trade strategy initiated by President Trump, who criticized India’s tariff structures. The first phase of tariffs will commence on April 5, with negotiations between the two countries ongoing to mitigate potential adverse effects. The situation is described as a mixed outcome rather than a setback for India.
The Indian government is currently assessing the economic consequences of the 26 percent reciprocal tariff imposed by the United States. A senior official from the Commerce Ministry confirmed to PTI that this tariff, introduced by President Donald Trump, is part of a broader strategy aimed at countries that impose high duties on American exports.
The comprehensive initiative commences with a universal 10 percent tariff on all imports into the United States beginning April 5, with the additional 16 percent bringing the total to 26 percent for India to be enforced from April 10. The official remarked that the ministry is evaluating the tariffs’ implications, characterizing the situation as a “mixed bag and not a setback for India,” with potential for negotiation on the affected duties.
Currently, India and the United States are engaged in discussions over a bilateral trade agreement, aiming to finalize the first phase by fall this year. The official suggested that ongoing diplomatic efforts might alleviate some negative impacts resulting from the tariffs.
On April 2, President Trump declared these tariffs while labeling the day as “Liberation Day”. He highlighted that India imposes a significantly high tariff of 52 percent on American goods, pushing the U.S. to reciprocate with a tariff of 26 percent. Trump proclaimed that this date would be remembered as pivotal for America’s economic revitalization.
Furthermore, Trump publicly criticized India’s trade policies, stating that despite his friendship with Prime Minister Modi, he felt unfairly treated due to the high tariffs imposed on U.S. goods.
In summary, the Indian government is evaluating the impact of the recently announced 26 percent tariffs by the United States, a measure highlighted by President Trump as a response to high tariffs imposed by India. Despite these complexities, official sources indicate opportunities for negotiation and potential relief through ongoing diplomatic discussions. The evolving relationship between India and the U.S. remains pivotal as both nations work towards a preliminary trade agreement this fall.
Original Source: www.business-standard.com
