This is India’s first official statement on the issue; Trump on Tuesday said imports from India might be hit with a tariff rate of 20 to 25 per cent as the trade agreement between the two nations has not yet been finalised yet. “I think so,” he said when asked if 20-25 percent would be a possible tariff rate for India. Later he announced 25 per cent tariffs beginning August 1File Photo
Responding to US President Donald Trump imposing “25 per cent,” tariff on India, the Narendra Modi government today said it will take all “steps necessary” to secure the country’s national interests as it has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK. In a short but clear statement issued late evening, the Ministry of Commerce said that the “Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications.”
This is India’s first official statement on the issue.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.
“The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.
“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,” according to a statement issued by the Ministry of Commerce and Industry headed by Piyush Goyal. Earlier External Affairs Minister S Jaishankar met Goyal after Trump’s initial statement of 20-25 percent tariffs on India on the sidelines of the ongoing Monsoon Session of the Parliament, sources said
August 1 is the deadline for implementation of reciprocal tariffs on various trading partners, including India. The deal remains unfinalised despite several rounds of discussions and any further delays could negatively impact the Indian economy and stock market but sources in know of developments say that for a government which is facing backlash on Trump’s repeated claims on brokering ceasefire between India and Pakistan, it needs to be extra caution while finalising the deal in mind the interests of people, especially the farmers
Recently India and the United Kingdom made history by officially signing the Comprehensive Economic and Trade Agreement (CETA) which is projected to elevate bilateral trade by $34 billion annually. At a time when the India-US trade agreement was facing uncertainties, CETA was described as India’s most ambitious pact with a Western country.
