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COVER STORY APRIL 11, 2025 | The Indian Eye 5

ciprocal tariffs will “completely dev- announced ‘Mission 500’ on Febru-
astate our economy” with the auto ary 13, 2025, aiming to more than
industry, pharmaceuticals and agri- double bilateral trade to USD 500
culture among sectors expected to billion by 2030.
face the brunt. He asked the govern- “The ongoing talks are focused
ment what it is doing about this tariff. on enabling both nations to grow
“Our ally has suddenly decided trade, investments and technology
to impose a 26 per cent tariff, which transfers. We remain in touch with
is going to completely devastate our the Trump Administration on these
economy--our auto industry, phar- issues and expect to take them for-
maceutical industry, and agriculture ward in the coming days,” the state-
are all on the line,” Rahul Gandhi ment added.
said in Lok Sabha US tariffs provide Indian ex-
“This is part of their culture and porters with a competitive advantage
history we know that. But we would over rival nations, said SC Ralhan,
like an answer from the government the President of the Federation of In-
of India, what are you doing about dian Export Organizations (FIEO),
our land? What are you going to do Leader of the Opposition Rahul Gandhi feels that the new tariffs will devastate the Indian adding that the movement is ‘quite
about this tariff that our ally has im- economy (ANI) favorable’.
posed on us,” he asked. The FIEO President expressed
Aam Aadmi Party leader Raghav optimism about the impact of the
Surjewala further alleged that imports from all trading partners.
Chadha on Thursday took a swipe at the US has been pressuring India The baseline duty of 10% will be ef- tariffs on Indian exports, noting that
the US imposing reciprocal tariffs on to reduce tariffs and questioned the fective from April 05, 2025, and the while India faces a tariff of around
India and recalled lines of a popu- government’s silence over this. “On remaining country-specific addition- 27 per cent, this remains manageable
lar Hindi number while stating that the other hand, America is pressur- al ad valorem duty will be effective compared to the higher tariffs im-
“Trump Tariff” could wreck the Indi- ing India to accept their agricultural from April 09, 2025. The additional posed on competing nations, partic-
an economy. “We offered unflinching export like wheat, cotton. They are duty on India, as per Annex I of the ularly China.
loyalty, but in return, the Trump Ad- pressuring India to end the import Executive Order, is 27%,” the Minis- The import tariffs imposed on
ministration has imposed the Trump duty on Pharmaceuticals. Modi gov- try said. peer Asian economies are more com-
Tariff that could wreck the Indian ernment is not answering any ques- “The Department of Commerce pared to the tariff rate of 27 per cent
economy,” he added. tions about this,” he said. is carefully examining the implica- on India could be an advantage to us,
Congress MP Manish Tewari on he added.
But faced with US President tions of the various measures/an-
Thursday urged the Centre to de- Donald Trump’s reciprocal tariffs, nouncements made by the President “We have an advantage in that
velop “a spine” and stand up to the India on Thursday said that it is of the USA. Keeping in view the whatever the advantage China had
US, which imposed 26 per cent tariffs studying the opportunities that may vision of Viksit Bharat, the Depart- with cheap raw materials, that ad-
on goods from India. The Congress arise from this new development ment is engaged with all stakehold- vantage is gone. I think this is good,”
leader said that the tariffs on India in US trade policy. The Ministry of ers, including the Indian industry and Ralhan said, adding that Indian man-
represented “abject failure” of the Commerce said in a statement that exporters, taking feedback of their ufacturers have an opportunity to in-
negotiations between the two coun- it is carefully examining the impli- assessment of the tariffs and assess- crease the trade share.
tries. cations of the various measures and ing the situation. The Department is US President Donald Trump’s
“It represents an abject failure reciprocal tariffs will impact the
of the negotiations that were taking announcements made by the US ad- also studying the opportunities that American economy more, leaving
may arise due to this new develop-
ministration.
place between the US and the govt of “The US President issued an ment in the US trade policy,” the them with limited buying options to
India,” Tewari said. “The US has im- Executive Order on Reciprocal Tar- Ministry added. cater for their needs according to
posed tariffs, expelling our students, iffs imposing additional ad-valorem Prime Minister Narendra Modi Ranjeet Mehta, CEO and Secretary
and cancelling visas without any duties ranging from 10% to 50% on and US President Donald Trump had General of industry body PHDCCI.
provocation, and the govt is absolute- “If you look at the first impact,
ly silent... The government needs to it is going to impact the American
develop a spine and stand up to the economy itself, first of all. The con-
US,” he added. sumers today who have the liberty to
Congress’ Rajya Sabha MP buy the products from anywhere in
Randeep Surjewala also expressed the world, wherever they are getting
concern and criticized Prime Min- cheaper. However, by levying these
ister Narendra Modi over the issue. tariffs, I think that it is going to be
Surjewala said, “The 27 per cent plus more expensive for the American
tariff imposed by India’s biggest trad- economy itself,” Mehta told ANI.
ing partner is a big matter of concern. Mehta said that President Trump
Indian Import is going to experience has made everyone talk about him by
an impact of Rs 26,000 crore to Rs announcing these tariffs. As far as In-
35,000 crore. What is the Modi gov- dia is concerned, PHDCCI General
ernment doing? Whenever the coun- Secretary said he thinks it is good for
try faces danger, Modi ji become si- the pharma sector that it has been
lent. PM Modi ji went to the US, then left out of the tariff ambit.
the US President called India a tariff He said the Trump tariffs will
abuser in his presence. They send our impact the gems and jeweler, textile,
migrants back in handcuffs like ani- The import tariffs imposed on peer Asian economies are more compared to the tariff rate of 27 and electronics sectors in particular.
mals. Now, the 27 per cent tariffs by per cent on India (Agency) Amidst this tumultuous time, he sees
America are a matter of concern.” “light at the end of the tunnel”, giv-

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