US President Donald Trump’s latest tariff policy has created fear among Indian exporters. In addition to the baseline tariff of 10%, with increased duties on exports from India, domestic vendors are afraid that it may affect their sales abroad. However, a solution may be around the corner with Indian and American authorities, which is interacting on a business deal before the tariff is implemented, suggest media reports.
Trump is “actively interacted” with India, Vietnam and Israel, CNN cited a senior advisor to the US President.
The 10% base tariff will be effective from today, while 26% of the country-specific duties for India will be applicable from next Wednesday (April 9).
The Government of India has said that it is “carefully investigating” the implications of the tariffs declared by Trump on 2 April, and the Ministry of Commerce is assessing the situation with all stakeholders. Exporters are taking response and the department is also studying opportunities that may arise due to tariff changes.
Trump has given increased duties as “liberation day” tariffs that try to prevent foreign vendors from “closing” American industries.
The US President, who repeatedly called India one of the “highest tarfing nations”, used a lighter tone, announcing the tariff for New Delhi, called Prime Minister Narendra Modi a “good friend”. But he told the Indian leader that when he visited America in February that New Delhi was “not treating us properly”. The White House stated that the Indian tariffs expensive for American companies to sell their products in India – which, if removed, would increase US exports at least $ 5.3 billion annually.
Experts fear that the increased tariffs will affect electronic exports of about 14 billion dollars and $ 9 billion gems and jewelery. Auto components and aluminum exports will also feel the brunt of 25% duty declared earlier on these products.
The government, however, is trying to solve it through negotiations with the Trump administration – with an eye on doubling bilateral trade by $ 500 billion by 2030, as declared after PM Modi’s US visit.
Indian and American teams are trying to accelerate a multi-regional bilateral trade agreement (BTA), which is mutually beneficial, the Commerce Ministry said that the day after the announcement of the US trade policy. The business deal will cover a series of issues of mutual interest including deepening the supply chain integration.
Indian officials are in touch with the Trump administration, the government said, their talks focus on increasing trade, investment and technology transfer.
