New Delhi: Hours after President Donald Trump of the United States announced a “discounted” 26 percent retaliatory tariff on Indian exports, a commerce ministry official informed the news agency PTI that the effects would be a “mixed bag and not a setback.”
The official, who requested to remain anonymous, indicated that a universal 10 percent tariff would be implemented on all imports into the US starting April 5, with the additional 16 percent taking effect on April 10. “It is a mixed bag and not a setback for India,” the official stated.
Furthermore, the Indian official mentioned that the commerce ministry is currently assessing the implications for India’s trade and highlighted that the Trump administration has shown a willingness to reduce tariff rates if its trade concerns are adequately addressed.
The White House has indicated that tariff rates would remain unchanged provided that countries do not retaliate further and respond to its trade concerns.
During his “Liberation Day” announcement, Trump referred to Prime Minister Narendra Modi as “a great friend” but remarked that India was “not treating us right.”
“Their Prime Minister (Narendra Modi) just visited the US recently. He is a great friend of mine, but I told him, ‘you’re a friend of mine, but you’ve not been treating us right.’ India imposes a 52 percent tariff, so we will impose half of that – 26 percent,” Trump stated.
A chart presented by Donald Trump during his remarks from the Rose Garden at the White House claimed that India levies 52 percent tariffs, citing currency manipulation and trade barriers, and that the US would now impose a discounted reciprocal tariff of 26 percent on India.
The NDA-led government is already in discussions to establish a bilateral trade agreement with the US, with both nations aiming to finalize the initial phase of the agreement by the fall (September-October) of this year.
