Trump tariff impact: Govt hopeful US will modify tariffs downwards

Despite tensions over tariffs, India continues diplomatic engagement with the US and remains hopeful that the White House will reconsider its 25% tariff on Indian goods

Opting to ignore US President Donald Trump’s unsavoury social media posts in the larger interest of keeping India-US ties on an even keel and New Delhi's response a measured one, Indian officials have over the past two days continued to engage with their American counterparts on the issue of the White House’s threat to impose 25 per cent tariff plus a penalty on goods from India.

 

Official sources said on Friday evening that they were hopeful that the White House has better appreciation of New Delhi's perspective and modify its tariffs on India downwards in the coming days, comparable to those it has proposed for such countries as Vietnam (20 per cent) and Indonesia (19 per cent). 

 

They said they were indeed surprised at Trump’s Wednesday evening (India time) announcement on imposing 25 per cent tariff on Indian goods, but have chosen to convey New Delhi’s viewpoint to the White House on the India-US trade deal, and the country’s long-standing ties with Russia, behind closed doors rather than issue public statements. “We are a responsible nation, and would prefer to deal with sensitive issues with the maturity they deserve rather than take to social media,” a government source said. As of now, the government is not mulling any retaliatory action against the US.

 

At the weekly media briefing of the Ministry of External Affairs (MEA), New Delhi’s official response to questions about Trump’s social media posts on tariffs, on India's economy, and on India’s relations with Russia was suitably measured. The MEA stressed that India-US ties have “weathered several transitions and challenges” and will continue to move forward.

 

“India and the US share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties. This partnership has weathered several transitions and challenges. We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward,” MEA spokesperson Randhir Jaiswal said.

 

 

To a query whether India has decided to not buy F35 fighter jets, Jaiswal said the question should be asked to the relevant ministry. He said India and the US have a strong defence partnership, which has been strengthened over the last several years. “There is potential for this partnership to grow further under the India-US COMPACT for 21st Century,” the MEA spokesperson said.

 

On India's energy procurement, especially in the context of Russian crude, Jaiswal said it is driven by national interest. “In securing our energy needs, we are guided by what is on offer in the markets, and also the prevailing global circumstances,” he said. With Trump criticising India for its continuing defence and energy purchases from Moscow, Jaiswal said India and Russia have a “steady and time-tested partnership”. “The sourcing of our defence requirements is determined solely by our national security imperatives and strategic assessments,” Jaiswal said.

 

“Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country,” Jaiswal added.

 

Russian President Vladimir Putin is scheduled to visit India later this year. Trump is also slated to visit India for the Quad Summit, which is likely in September. 

Business as usual 

• Official sources said they were hopeful that the White House has a better appreciation of India’s perspective 
• As of now, the government is not mulling any retaliatory action against the US, sources said
• On India’s energy procurement, especially Russian crude, MEA said it is driven by national interest