India considering lowering tariffs on some high-end products from US
New Delhi, Jan 29, 2025
The potential tariff cuts come just a day after US President Donald Trump criticised India, China, and Brazil for imposing high tariffs
India is considering lowering tariffs on some high-end products from the United States, including specific steel, luxury motorcycles, and electronic goods, a report in NDTV Profit said, citing sources.
This move, expected to be confirmed when Finance Minister Nirmala Sitharaman presents the budget on Saturday, might not significantly impact Indian industries. India currently imposes duties of over 100 per cent on 20 items imported from the US.
Why is India considering a tariff cut?
The potential tariff cuts come just a day after US President Donald Trump criticised India, China, and Brazil for imposing high tariffs. During a conversation with House Republicans, Trump stated, “We’re not going to let that happen any longer… we’re going to put America first,” referring to these countries as “tremendous tariff makers.” His comments reflect ongoing frustrations with trade imbalances, particularly with countries that impose high duties on US goods.
Trump’s remarks on tariffs echo his earlier statements, where he emphasised reciprocal trade, suggesting that if a country imposes high tariffs on US products, the US will respond with similar tariffs. He often targets countries like India, China, and Brazil for being tough on trade.
Trump’s America first approach
The US has historically raised tariffs on goods from countries like China, aiming to boost domestic manufacturing. Trump’s economic strategy focuses on increasing tariffs on foreign goods while lowering taxes for American workers and businesses, with the goal of bringing jobs and factories back to the US. Critics see this approach as a way to use tariffs as a trade weapon, as seen in his conflict with Colombia over deportations. Trump imposed a 25 per cent tariff on Colombian goods after the country refused to accept a plane of deported migrants, forcing Colombia to comply.
[The Business Standard]
