India Working to Safeguard Exports Amid US Tariff Threat: Sitharaman
Finance Minister Nirmala Sitharaman stated that the proposed U.S. tariffs will impact India, although Commerce Minister Piyush Goyal is in active talks with the Trump administration to address the issue. Speaking at a post-budget event in Vishakapatnam, Sitharaman emphasized that India is working closely with U.S. officials to protect its export interests.
She explained that India’s next steps will depend on the results of these ongoing discussions. “Tariffs are a major talking point for the U.S. President, and Minister Goyal has already met with U.S. officials, including the United States Trade Representative, to discuss the matter,” Sitharaman said. She added that the outcome of these negotiations will be crucial in ensuring that India’s interests are safeguarded.
In a related development, U.S. President Donald Trump announced that reciprocal tariffs will be imposed from April 2 on all nations that levy high taxes on American goods. However, Indian officials remain optimistic that a resolution can be reached to exempt India from these tariffs and potentially pave the way for a trade deal by this fall.
Trump’s strategy is aimed at countering what he calls unfair trade practices, such as non-monetary barriers, subsidies, and high value-added taxes. The goal is to encourage foreign countries either to lower or eliminate tariffs on U.S. products or to move manufacturing operations to the United States, thereby boosting its economy. Earlier tariffs on Canada and Mexico had caused significant market disruption, reduced consumer confidence, and created uncertainty for many businesses, leading to delays in hiring and investment. Although some tariffs were initially enforced, they were partially rolled back after market reactions worsened.
The pause in tariff enforcement, lasting until April 2, has provided temporary relief to sectors like the automotive industry. Trump has defended tariffs as a way to generate revenue and correct trade imbalances. Indeed, the U.S. trade deficit reached a record high in January, rising by 34 percent to $131.4 billion as imports increased. Analysts believe that while a surge in gold imports partly contributed to the deficit, businesses were also positioning themselves ahead of the tariff changes.