US President Donald: Trump has announced a mutual tariff on many countries around the world including India from April 2. As this date comes closer, an atmosphere of anxiety is spreading in every country. At such a time, India has prepared to reduce tariffs on 55 percent of goods worth more than $ 23 billion imported from the US to avoid tariff war with Trump, which will be one of the largest tariffs in the last few decades. The government’s move has been taken with the aim of reducing the loss of India’s exports of $ 66 billion from Trump’s mutual tariff. On the other hand, the Ministry of Commerce told the Lok Sabha on Tuesday that the government had cut an average of 10.66 percent in industrial charges.
With the possibility of US President Donald Trump’s global mutual tariff to be implemented from April 2, the central government is trying to reduce its impact on Indian industries as much as possible. Trump’s new tariff war has not only shaken markets around the world, but has also worried the enemies and colleagues of America.
The Commerce Ministry told the Lok Sabha on Tuesday that amidst the ongoing trade talks with the US and the threat of mutual tariffs, India has reduced its average industrial tariff to 10.66 percent. According to WTO 2023, India’s simple average tariff rate is 17 percent. The industrial tariff rate in 2023 will be 13.5 percent. Minister of State for Commerce and Industry Jitin Prasad said that in the Union Budget 2025-26, the simple average industrial tariff has been reduced to 10.66 percent.
He said that the two countries are focusing on reducing tariffs and non-tariff barriers, increasing access to their markets, increasing supply chain integration and resolving bilateral trade issues. Jitin Prasad’s statement came at a time when India is considering its biggest tariff step in recent years.
Meanwhile, sources say that the central government wants to protect its $ 66 billion exports by significantly reduced tariffs on American goods. Trump’s mutual tariff is expected to affect India’s 87 percent exports to the US. After China, America is the second largest trading partner in India and India does not want to lose it under any circumstances. This is the reason that India has agreed to reduce tariffs on more than half or 55 percent of goods coming from the US in the first phase under the trade agreement with the US. Government sources have said that the tariff on these items has been reduced from 5 percent to 30 percent. Loss of $ 23 billion to India, ie about 1.5 billion rupees, is also ready to remove tariffs on American goods worth more than two lakh crore rupees on a large scale or completely eliminate. According to data from the World Trade Organization (WTO), the US’s estimated trade deficit with India is $ 45.6 billion. Prime Minister Narendra Modi expressed his readiness to start talks on trade agreement during his visit to America in February and resolve the ongoing dispute on tariffs.
However, Indian officials say that no final decision has been taken yet about tariff cuts on more than half of goods coming from the US. It all depends on how much tax relief is provided by the US. Other options are also being considered in this regard, including adjusting tariffs for specific areas rather than wide tariff cuts.
The team will last for three days under the leadership of Brendon Lynch.
Trump’s team in India amid tariff threats, meeting from today
– Officials of both countries will discuss the solution of tariff issue in the first phase
New Delhi: US President Donald Trump has announced a tariff on India from April 2, accusing India of imposing the most tariffs on the US. As this deadline is approaching, a team of Trump has reached India. This team will hold important meetings with Indian officials to finalize the first phase of the trade agreement with the Trump administration. This meeting will begin on Wednesday.
According to media reports, the two countries will discuss the completion of the first phase of trade agreement by September-October. Trump recently threatened to increase import duty on India. After this, this step has been taken.
The US team aims to resolve mutual trade issues and reduce tariff controversies. The meeting, starting on Wednesday, will set out the outline and time limit of the trade agreement, which will probably be implemented in two phases. A team led by Brendon Lynch, Assistant Representative of South and Central Asia Affairs of the US Trade Representative, will meet Additional Secretary, Indian Commerce Department Rajesh Aggarwal.
The talks between the officials of the two countries are still in the initial stage, but at this stage both countries will focus on tariff cuts. US President Trump is pressurizing luxury cars, electric vehicles, whiskey and agricultural products to reduce tariffs in Indian markets. The end of the three -day dialogue by the end of this week is expected to come more clarity. The US embassy spokesman said, “We value the ongoing dialogue with the Government of India on business and investment matters and hope to continue these discussions with a creative, justified and visionary approach.”
However, Indian officials are still silent about the benefits of this agreement.
The most impact of tariffs is likely to fall on pharma-automotive exports
New Delhi: America’s mutual tariff may have the most impact on India’s pharmaceutical and automotive exports. Because this industry is highly dependent on the US market. Officials said that the new tariff could benefit alternative suppliers like Indonesia, Israel and Vietnam. However, a government official said that tariffs on meat, maize, wheat and dairy products are 30 to 60 percent. There will be nothing to reduce the tariff on these items. India may be willing to reduce the fees on almonds, pistachios, porridge and quinoa. Another official said that India would gradually focus on cutting automobile tariffs, which is currently more than 100 percent. India’s trouble on this issue: On March 10, the Commerce Secretary told the Standing Committee of Parliament that India does not want to lose America as a business partner, but the government will not compromise on national interests.
