New Delhi (National Times): In response to former U.S. President Donald Trump’s recent announcement of a 26% retaliatory tariff on Indian exports, a senior official from India’s Commerce Ministry has stated that the move is a “mixed bag” rather than a major setback.
India Evaluating the Impact
Speaking anonymously to news agency PTI, the official explained that the new tariff structure consists of a universal 10% duty on all U.S. imports from April 5, with an additional 16% charge applying from April 10. Despite concerns over trade relations, the official assured that India is closely analyzing the potential effects on its exports.
The Indian government also noted that the Trump administration has shown openness to reducing tariffs if India addresses its trade concerns. Additionally, the White House has hinted that tariff rates would remain unchanged if countries refrain from retaliating and work towards resolving trade disputes.
Trump Criticizes India’s Trade Policies
During his “Liberation Day” announcement, Trump praised PM Narendra Modi as a “great friend” but reiterated that India had not been “treating the U.S. fairly” in trade relations.
“Prime Minister Modi just left after his visit here. He is a great friend of mine, but I told him, ‘You’re my friend, but you’re not treating us right.’ India imposes a 52% tariff on us, so we are now charging them 26%, which is half of what they impose,” Trump stated.
Trump’s Justification for Tariff Hike
While addressing the media from the White House Rose Garden, Trump displayed a chart alleging that India’s trade barriers, currency policies, and tariff structures were unfavorable to the U.S. As per White House documents, the tariff on Indian exports will actually be 27%, slightly higher than what Trump mentioned in his speech.
With these developments, the future of U.S.-India trade relations remains uncertain, but India continues to evaluate the potential impact while keeping communication channels open for negotiations.
