US President Donald Trump on Thursday took a big decision by putting mutual tariffs on several countries including India. Interestingly, Trump on the one hand described Prime Minister Narendra Modi as his “great friend”, and on the other hand he put 26 percent tariff on India.
In a statement at the White House, Trump said that India imposes an average of 52 percent import duty on products coming from the US, which he described as “very rigid”. He said that Prime Minister Modi is his good friend, but India is not treating America properly in terms of business.
Trump’s statement: India imposes 52 percent fee
In his statement, Trump said, “Prime Minister Modi had just come to America. He is my good friend, but I clearly told him that you are my friend, yet you are not behaving fairly with us. You charge 52 percent fee from us, while we do not take almost anything from you.”
A 10 percent universal tariff will be imposed under the new tariff declared by the Trump administration, which will be effective from April 5. India will be particularly implemented from April 9, a 26 percent tariff.
Which areas will affect
This decision is expected to affect the export of agricultural and pharmaceutical products from India to the US. Areas such as steel and aluminum have already been imposed 25 percent tariff by the Trump government, which is still applicable. Apart from this, from April 3, auto imports and its parts will also be charged 25 percent.
Indo-US business relationship
America has been India’s largest trading partner between 2021-22 and 2023-24. The US stake in India’s total goods exports around 18 percent.
According to a report by SBI Research, India’s exports may decline by 3 to 3.5 percent due to the US tariff decision.
The announcement was made at a time when Trump gave information about his tariff decision just before Trump and Modi’s meeting on 13 February. In a joint press conference, Trump had said that India has been very strict in terms of tariffs.
Even before this, Trump called India a “tariff king” and an inappropriate dealing country in business. He had said that America would collect the same tariffs that other countries collect from it.
Progress towards trade agreement
Although India did not get the kind of relief as the government expected, there has been some positive progress between India and the US regarding bilateral trade agreement.
Last week, the two countries agreed to the terms of reference for the proposed trade agreement. According to sources, the Government of India is considering reducing import duty on Harley-Davidson bike, Borbon Whiskey and California wine.
In the Union Budget presented this year, it was proposed to reduce the fee on Harley-Davidson bike from 50 percent to 40 percent.
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The post Trump’s tariff shock on India: Fee along with friendship also appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
