US hits India with 27% tariffs, citing 'uniquely burdensome' trade barriers

While announcing the tariffs at an event held at the White House, Trump presented a chart claiming that India imposes 52 per cent tariffs on US goods, which includes currency manipulation

US President Donald Trump imposed 27 per cent ‘discounted’ tariffs on imports from India on Thursday (IST). India is one of the many nations that have been included in Trump’s list of nations to be taxed.

 

A fact sheet titled ‘President Donald J Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security’ was issued after he announced his much-anticipated reciprocal tariffs. The White House mentioned, “India imposes their own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India. If these barriers were removed, it is estimated that US exports would increase by at least $5.3 billion annually.”

 

 

What more did Trump say? 

While announcing the tariffs at an event held in the Rose Garden of the White House, Trump showed a chart claiming that India imposes 52 per cent tariffs on US goods, which includes currency manipulation and trade barriers.  Trump, who has repeatedly called India a “tariff king” and a “very high tariff nation”, criticised India again in his address and stated that India is very tough. He also referred to Prime Minister Narendra Modi’s recent visit to the US and said, “he’s a great friend of mine, but I said, You’re a friend of mine, but you're not treating us right’. They charge us 52 per cent. You have to understand, we charge them almost nothing, for years and years and decades, and it was only seven years ago, when I came in, that we started with China and we took in hundreds of billions of dollars from China in tariffs.”

 

In his address, Trump said several countries have taken advantage of the US for generations, with many countries imposing significantly higher tariffs on American produced goods. He pointed out that while the US charges on passenger vehicle imports (with internal combustion engines), the European Union (10 per cent) and India impose nearly 70 per cent on the same product, which is much higher. 

He added that the US maintains one of the lowest simple average most-favoured-nation (MFN) tariff rates in the world at 3.3 per cent, whereas India's average tariff rates stand at 17 per cent.

 

India reacts to tariffs imposed 

A PTI report citing a senior official from the commerce ministry stated that the government is evaluating the economic impact of the tariffs imposed by President Donald Trump. The official added, “The ministry is analysing the impact of the announced tariffs... It is a mixed bag and not a setback for India,” further stating that there is scope for negotiation.

 

President Trump’s administration has indicated that if a country addresses its trade concerns, the duties could be revised in their favour. 

   

[With PTI inputs]