Former Governor of the Reserve Bank of India (RBI) Raghuram Rajan has responded to the 27 percent counter -tariffs imposed by former US President Donald Trump. He called it an opportunity for India and said that this policy could prove to be harmful for the US itself.
Rajan believes that the decision by the Trump administration to impose tariffs on about 60 countries will eventually harm the US economy and its impact on India will be limited.
Raghuram Rajan’s comment on Trump’s tariff policy
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Rajan said that India may reduce the tariff that it is currently increasing.
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Even if it does not help America to reduce tariffs, India can benefit from global competition.
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He described Trump’s policy as “self -goal”, which can only harm America.
Trump’s tariff announcement: 10% to 50% fee
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Trump has announced a tariff of 10 to 50 percent on imports from all business partner countries.
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10 percent basic tariff from April 5 and
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The tariff of 27 percent will be applicable from April 9.
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Pharma, semiconductor and energy sector products are exempted from this tariff.
Rajan said that American consumers will now have less options, because when all countries are tariffs, then options will not be available from non-tariff countries. This will increase the prices of goods in America and decrease demand, which can affect their own economic growth rate.
What is the opportunity for India?
Rajan said, “India can turn this tariff crisis into an opportunity. We should reduce our tariffs and make business more competitive.”
He also suggested that India should focus on increasing trade cooperation with other regions like ASEAN, Japan, Europe and Africa.
Rajan believes that protectionism is increasing in the current global environment, in such a situation, India will have to adopt a strategy wisely.
Balance with China and South Asia is necessary
Rajan said that India should make equal level relations with China and give priority to mutual cooperation with SAARC countries.
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For this, regional cooperation will have to be promoted by keeping political differences aside.
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He warned that when the world is divided into regional trade blocks, South Asia cannot remain isolated.
Trump’s policy purpose
According to Donald Trump, this policy has been made aimed at promoting production in the US and reducing trade deficit.
He alleged that countries like India charge excessive fees on American products, so a counter -fee of 27 percent was necessary.
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