Trump's reciprocal tariffs: Govt weighs in, TDP seeks seafood shield

Opposition parties seek to know Centre's plans to protect interests of Indian farmers and small-scale industries

Members of Parliament (MPs), including those from parties belonging to the ruling National Democratic Alliance (NDA) at the Centre, on Thursday raised concerns in Parliament over the US imposing a 27 per cent reciprocal tariff on India.

 

In one of the first comments from the government, Minister of State for Finance Pankaj Chaudhary said India is assessing the tariff hike imposed by the US and its impact.

 

“For (Donald) Trump, it’s America First, but for Modi, it’s India First. We are assessing the impact of the reciprocal tariffs imposed by the US,” he said on the sidelines of an event organised by PFRDA in New Delhi.

 

 

Opposition parties, including the Congress, Left outfits, and the Shiv Sena (UBT), demanded to know the Union government’s plans to protect India’s industry and agriculture.

 

Sangh Parivar affiliates, meanwhile, maintained that the government was committed to protecting the interests of India’s farmers and small-scale industries.

 

During Zero Hour in the Lok Sabha (LS), Leader of Opposition Rahul Gandhi asked how the government planned to protect Indian industry from the tariffs, which he said would “completely devastate” India’s economy, particularly sectors like automotive, pharmaceutical, and agriculture.

 

Gandhi further said foreign policy is about managing external countries and pointed out that, on one hand, “you have given China 4,000 square kilometre of our land, and on the other hand, our ally, the US, has suddenly decided to impose tariffs on us”. He said the government of India must provide answers regarding these developments.

 

Also in the LS, Lavu Sri Krishna Devarayalu of the Telugu Desam Party (TDP) urged the Centre to protect Andhra Pradesh’s 800,000 farmers, who are likely to be affected by the 27 per cent tariff on seafood. Ecuador, a competitor of India in the sector, has been hit with only a 10 per cent tariff. He added that $3.5 billion worth of seafood exports take place from the state every year. The TDP is a constituent of the NDA.

 

In the Rajya Sabha, Aam Aadmi Party MP Raghav Chadha suggested that the government use its approval of Tesla founder Elon Musk’s Starlink satellite internet services as leverage to renegotiate the 27 per cent tariff.

 

The Swadeshi Jagran Manch (SJM), an economic think tank affiliated with the Rashtriya Swayamsevak Sangh, reiterated that it expected the government to heed its demand to protect the country’s agriculture, dairy, and small-scale industries.

 

SJM national co-convener Ashwani Mahajan told Business Standard that there was a “silver lining” in the tariffs imposed by the US, as the tariffs on China were steeper compared to those on India.

 

“It could help India gain markets in several sectors, such as chemical exports, where we lag far behind China,” he said, adding that it would be a boost for the government’s Aatmanirbhar Bharat initiative. Mahajan said the Trump administration’s move to impose higher tariffs on China than on India had a clear “geopolitical subtext”.

 

In Mumbai, addressing a press conference, Shiv Sena (UBT) chief Uddhav Thackeray said the Centre should have taken people into confidence about the “impending danger” of US tariffs and the steps being taken to mitigate it. Thackeray said both Houses of Parliament should have set aside all other business to discuss the impact of US reciprocal tariffs on India.

 

In Madurai, CPI(M) leader Brinda Karat slammed the Bharatiya Janata Party-led NDA government for its silence on the tariffs imposed by the US. 

 

(With PTI inputs)