Hours after US President Donald Trump placed a “discounted” 26 per cent retaliatory tariff on Indian exports to the US, a commerce ministry official told news agency PTI that its effect was a “mixed bag and not a setback.
The official, who did not want to be identified, stated the across-the-board 10 per cent tariffs would become effective on all US imports from April 5, and the balance of 16 per cent would be effective from April 10. “It is a mixed bag and not a setback for India,” the official added.
The Indian official further said that the commerce ministry was examining the effect on India’s trade and added that the Trump administration has shown a willingness to reduce tariff rates if its concerns regarding trade are resolved.
The White House had indicated that tariff rates would not be raised if nations did not retaliate any further and redressed its concerns regarding bilateral trade.
‘India Not Treating US Right,’ Says Donald Trump
During his “Liberation Day” announcement, Trump called Prime Minister Narendra Modi ‘a great friend’ but added that the country was “not treating us right.”
“Their Prime Minister (Narendra Modi) just left (the US recently). He is a great friend of mine, but I said to him that ‘you’re a friend of mine, but you’ve not been treating us right.’ India charges us 52 per cent, so we will charge them half of that 26 per cent,” Trump said.
Donald Trump’s chart, on which he was speaking from the Rose Garden in the White House, claimed India levied 52 per cent tariffs, in the form of currency manipulation and trade barriers, and America was now going to impose a discounted reciprocal tariff of 26 per cent on India.
The Centre, led by the NDA, is already in talks for its bilateral trade agreement with the US. The two nations are targeting the completion of the first phase of the agreement by fall (September-October) this year.
