New Delhi, July 30: The government on Wednesday said it has taken note of US President Donald Trump’s decision to impose a 25 per cent tariff on India’s exports starting Friday, and is studying its implications.
The Commerce Ministry said in a statement that India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months.
“We remain committed to that objective. The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” it said in the statement. The Centre further stated that it will take all steps “necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK”.
India’s reaction came after Trump threatened to impose a 25 per cent tariff on India’s exports. “India will be paying a tariff of 25 per cent” starting on August 1,” Trump posted on Truth Social. He said that India would also face an additional tariff penalty for buying Russian energy. Trump had set the penalty, known as secondary tariffs, across the board at 100 per cent for all who are buying Russian energy if Moscow did not reach a ceasefire with Ukraine. In his post, he said: “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World”. He accused India of having “the most strenuous and obnoxious non-monetary Trade Barriers of any Country”.
He added: “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE”. “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” he wrote.
Tauntingly, he signed off, “MAGA” (Make America Great Again). The US has been insisting on zero tariffs on its exports, and most countries and the European Union that have made a deal have agreed to this. One of the sticking points in the negotiations with India is the opening of Indian markets to US agricultural products, which would affect India’s farm sector, the largest in the country.
IANS