Trump Announces 26% Tariffs on Indian Imports in Trade Policy Shift
U.S. President Donald Trump has announced a 26% tariff on imports from India in response to India’s high tariffs on U.S. goods. Trump emphasized historical trade imbalances and stated that the tariffs would take immediate effect, while India has established a control room to monitor the situation and had engaged in prior diplomatic efforts to seek an exemption.
On Thursday, United States President Donald Trump announced a 26% tariff on all imports from India, describing the action as a “kind reciprocal” measure. He characterized India’s existing tariffs on American goods as “very, very tough,” indicating that India’s 52% tariff imposed on U.S. products far exceeds the United States’ previous rates. Trump emphasized that America had been at a disadvantage for many years, a situation he intends to rectify.
During his address titled ‘Make America Wealthy Again’ at the White House, the President referenced the recent visit of Indian Prime Minister Narendra Modi. Although he acknowledged their friendship, Trump remarked, “You’re a friend of mine, but not be treating us right,” highlighting long-standing trade inequalities where the U.S. charged minimal tariffs while India enforced challenging rates on American goods.
In his comprehensive announcement, Trump indicated that tariffs of at least 10% would apply to nearly all imports, with elevated rates directed at nations with significant trade deficits with the U.S. Additionally, a 25% tariff on all foreign-made automobiles was declared, intended to mitigate the “horrendous imbalances” affecting the U.S. industrial sector. Trump condemned the historical economic arrangement, stating, “Taxpayers have been ripped off for more than 50 years,” asserting that changes would now be enforced.
The tariffs announced by Trump are set to take immediate effect, according to the White House. India is actively monitoring these developments, with the government establishing a control room to oversee Trump’s announcements on reciprocal tariffs. Senior officials from key ministries, including commerce and industry, will scrutinize the situation closely.
Prior to the tariff announcement, India sought diplomatic engagement to secure an exemption through discussions geared towards a bilateral trade agreement. Minister Piyush Goyal visited Washington, D.C., to initiate dialogue on this matter, aiming to enhance economic collaboration between India and the United States.
Moreover, a recent report from the Office of the United States Trade Representative detailed the stringent tariff and non-tariff policies of various countries, noting that India has some of the most restrictive practices among major economies. The report highlighted India’s continued imposition of high tariffs and regulatory barriers, particularly affecting sectors like agriculture, pharmaceuticals, medical devices, and digital services.
In conclusion, President Trump’s announcement of a 26% tariff on imports from India marks a significant shift in U.S. trade policy, prompted by longstanding trade imbalances. India is actively monitoring these developments, having sought diplomatic discussions to counter the tariffs. As the situation unfolds, the implications for U.S.-India relations and broader economic impacts remain to be seen.
Original Source: www.business-standard.com
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