Indian Official Responds to Trump’s Tariff as Mixed Outcome, Not a Setback
A recent announcement by Donald Trump regarding a 26 percent tariff on Indian exports is viewed by Indian officials as a mixed outcome. The tariffs will be implemented in phases and come amid negotiations for a trade agreement between the two nations, with hopes to address ongoing trade concerns.
Amid bilateral negotiations for a trade agreement, United States President Donald Trump announced a 26 percent retaliatory tariff on Indian exports. An official from the Indian commerce ministry stated that the impact of the tariff is a “mixed bag and not a setback.” The universal 10 percent tariffs will be implemented on all imports to the US starting April 5, with an additional 16 percent going into effect on April 10.
The official, preferring to remain unnamed, indicated that the commerce ministry is evaluating the effect of these tariffs on India’s trade. The Trump administration has shown a willingness to reduce tariff rates contingent upon addressing its trade concerns, stating that tariffs would remain unchanged if there were no retaliatory actions.
During his announcement, President Trump described Prime Minister Narendra Modi as “a great friend” but noted that India has not been reciprocating favorably, asserting that India charges up to 52 percent tariffs. Consequently, Trump decided to impose a retaliatory tariff of 26 percent to reflect that imbalance.
In his remarks from the White House, Trump referenced a chart illustrating India’s alleged tariffs, including factors such as currency manipulation. The Indian government is currently engaged in discussions toward a bilateral trade agreement with the US, aiming for initial agreements to be finalized by September or October 2021.
In summary, the announcement of the 26 percent tariff by President Trump is perceived by Indian officials as a mixed outcome rather than a significant setback. While the Trump administration emphasizes the need for reciprocal trade practices, ongoing negotiations between the US and India may shape the future of their bilateral trade relationship. The effective dates of the new tariffs highlight an urgent need for both governments to address trade concerns and foster cooperation.
Original Source: www.hindustantimes.com
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