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COVER STORY FEBRUARY 28, 2025 | The Indian Eye 4

TARIFFS THREAT

CAN INDIA

REACT?

As US President Donald Trump threatens 100% reciprocal tariffs against India,

Commerce minister Piyush Goyal’s will now visit the US to negotiate the Bilateral
Trade Agreement. How will this tariff war impact India?

OUR BUREAU
Washington, DC/New Delhi
S President Donald Trump
targeted India’s import duties
Uin speech to a joint session of
Congress on Tuesday. Trump specifi-
cally targeted India’s tariffs on auto-
mobile imports saying, “India charges
us auto tariffs higher than 100%”.
While addressing a joint session of the
US Congress, Trump said that the re-
ciprocal tax will kick in on April 2. He
said that the US has been ripped off
for decades by nearly every country on
earth and vowed not to “let that hap-
pen any longer.”
Trump said, “ Under the Trump
administration, you will pay a tar-
iff and, in some cases, a rather large
one. Other countries have used tariffs
against us for decades and now it’s
our turn to start using them against
those other countries. On average the
European Union China, Brazil India
Mexico and Canada have you heard
of them and countless other nations
charge us tremendously higher tariffs Prime Minister Narendra Modi and US President Donald Trump deliver a joint press statement after their meeting at the White House, in Wash-
than we charge them. It’s very unfair. ington, DC (ANI)
India charges us auto tariffs higher
than 100 percent.”
The US President also vowed to stated that the tariffs are likely to in- American goods. said he sees US President Donald
Tax the countries who were taxing the crease with the decision of the US Trump emphasized that this ap- Trump’s recurring statement against
US and claimed that the US had been President. Sitharaman said, “We will proach would address unfair trade India- as a ‘tariff king’- to be a nego-
ripped off for years by every country have to see how the Commerce Min- practices, including non-monetary tiating posture. “I personally feel that
on Earth. istry takes up negotiations with the barriers, subsidies, and VAT systems these kinds of statements are a kind of
Union Finance Minister Nirma- U.S. to ensure that our interests are to encourage foreign countries to ei- negotiating posture,” Sahai said, af-
la Sitharaman on Thursday said that well-represented.” ther reduce or eliminate tariffs against firming that Indian leadership is quite
the impact of the US tariffs will be felt On February 18, Donald Trump the US or set up their manufacturing capable of making a deal. Sahai hopes
on India, adding that Union Minis- had outlined a new trade policy fo- base in the US which will add to its India will be able to broker a prefer-
ter Piyush Goyal is going to America cused on fairness and reciprocity and growth in the long term. ential tariff arrangement with the US
and holding talks with the govern- said that the US would implement re- Meanwhile, Ajay Sahai, Director so that Trump’s reciprocal tariff is not
ment there. Speaking at an event in ciprocal tariffs, charging other coun- General and CEO of Federation of applied to India.
Visakhapatnam, Sitharaman further tries the same tariffs they impose on Indian Export Organizations (FIEO), Continued on next page... >>

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