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COVER STORY APRIL 11, 2025 | The Indian Eye 4

TARIFF WAR

TRUMP STUNS

THE WORLD

Opposition parties put pressure on the Modi government as they allege that the US

is pressuring India to reduce tariffs and question the government’s silence over this.

How bad is Trump’s new tariff for India?

OUR BUREAU
Washington, DC/New Delhi
n Wednesday, US President
Donald Trump dropped a
Obombshell as he announced
reciprocal tariffs across the globe.
But Trump emphasized that the US
economy and stock market would see
growth. While speaking briefly with
the media on Thursday, Trump took
a question on the stock market drop
following the tariffs and said, “I think
it’s going very well,” and added that
the United States will “have six or
seven trillion dollars coming into our
country.”
Amid worldwide criticism,
Trump declared a national economic
emergency and announced tariffs of
at least 10 per cent across all coun-
tries, with rates even higher for 60
countries. The tariff plan imposed
high levies on many countries, in-
cluding 26 per cent on India, 49 per
cent on Cambodia, 46 per cent on
Vietnam, 34 per cent on China, 24
per cent tariff on Japan, 20 per cent
on the EU, US media reported, not- India and US are discussing a new trade pact which can help reduce the impact of Trump’s new tariff regime (ANI)
ing that more than 180 countries and
regions will face tariffs. Now India will be taxed a recip- sponse to the US tariffs reflects ex- tariff on auto component imports
But following US President Don- rocal tariff of 27 per cent. Goods such pectations of ongoing trade discus- further dampened market sentiment,
ald Trump’s announcement of recip- as steel, aluminium, and auto-relat- sions between India and the US, as prompting a cautious stance among
rocal tariffs, International Monetary ed goods from India will face a 25 well as the possibility of higher tariffs investors,” said Sundar Kewat, Tech-
Fund (IMF) Managing Director per cent tariff, and pharmaceuticals, impacting other countries more sig- nical and Derivatives Analyst, Ashika
Kristalina Georgieva expressed con- semiconductors, copper, or energy nificantly, limiting the impact on In- Institutional Equity.
cern over the impact on the global products shall remain out of the re- dian exports, said Ajit Mishra - SVP, But the opposition parties are
economy and said that the tariffs rep- ciprocal tariffs purview for now. Research, Religare Broking Ltd. now putting pressure on the govern-
resent a “significant risk to the global The Indian stock indices closed “The primary catalyst for today’s ment, demanding answers and action.
outlook.” Thursday’s session lower, weighed decline was deteriorating global sen- Congress leader and Leader
Georgieva urged the United down by the heat of the US admin- timent, exacerbated by US President of Opposition in Lok Sabha Rahul
States and its trading partners to istration’s reciprocal tariffs imposed Trump’s announcement of a 27 per Gandhi said on Thursday that the
“work constructively to resolve trade on partner countries, including India. cent reciprocal tariff on Indian im- United States’ decision to impose re-
tensions and reduce uncertainty.” “The market’s measured re- ports. Additionally, a 25 per cent Continued on next page... >>

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