The Indian government is assessing the impact of US President Trump’s 27% reciprocal tariffs on India, engaging with stakeholders for feedback. The tariffs are lower than those imposed on China and Vietnam, with ongoing discussions for a multi-sectoral Bilateral Trade Agreement. The USTR report criticized India’s high applied tariffs, creating uncertainty for US exporters.

In response to the recent announcement by United States President Donald Trump imposing a 27 percent reciprocal tariff on India, the Indian government has stated that it is thoroughly evaluating the consequences of these tariffs. Engagements with various stakeholders, including domestic industries and exporters, are ongoing to gather their insights on this significant trade development.

The official statement from the Commerce Ministry highlighted that this new US trade policy could present opportunities for India, which is currently being analyzed. Notably, the 27 percent tariffs imposed on India are lower compared to the 34 percent on China and the 46 percent on Vietnam, both of which are major competitors in the US marketplace.

Additionally, the tariffs on India are less severe than those applied to some other Asian countries, such as Thailand (36 percent) and Indonesia (32 percent), which have gained substantial investments from China and have established closer ties with the Chinese supply chain. The Indian Department of Commerce emphasized its commitment to understanding these developments and is in active discussions with US trade representatives to finalize a beneficial multi-sectoral Bilateral Trade Agreement (BTA).

The statement from the Indian government reassured that communication with the Trump Administration remains strong, aiming to advance discussions in the upcoming days. India continues to uphold its Comprehensive Global Strategic Partnership with the United States, striving for mutual benefits for both nations.

The USTR report had previously criticized India’s implementation of high applied tariffs on various goods including vegetable oils, apples, and automobiles, noting that the disparity between WTO-bound and applied tariff rates creates unpredictability for US stakeholders. This inconsistency has allowed India to adjust tariffs on numerous product categories, which have affected key US exports in recent budgets.

In summary, the Indian government is taking a proactive approach in evaluating the implications of the new US reciprocal tariffs while also exploring potential opportunities that may arise from this economic shift. The engagement with domestic industries and ongoing discussions with the US underscore India’s commitment to maintaining a strong trade partnership with the United States. The situation highlights the complexities of global trade relationships and the challenges that arise from tariff fluctuations.

Original Source: indianexpress.com

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