'Not a setback': India calls Trump's new tariffs 'a mixed bag'

India is weighing its response to a contemporary 26 per cent tariff proposal unveiled by US President Donald Trump in a usually fiery speech on ‘Liberation Day’, the place he railed in opposition to what he described as India’s unfair commerce practices.

The transfer threatens to complicate ongoing commerce negotiations between the 2 international locations, however Indian officers seem unfazed, insisting that the choice, whereas severe, isn’t a setback.

‘Not a setback’

Talking with attribute bravado, Trump brandished a chart claiming a 52 per cent tariff burden on US exports to India, declaring, “India, very, very robust. Very, very robust. The Prime Minister simply left. He’s a fantastic buddy of mine, however I stated, ‘You’re a buddy of mine, however you’re not treating us proper.’” The president argued that for many years, the US has charged “virtually nothing” on Indian items whereas American merchandise have been subjected to stiff duties.

In response, a senior Indian official confirmed that the Ministry of Commerce is presently assessing the impression of the proposed tariff, with the implications beneath shut evaluate. “It’s a blended bag and never a setback for India,”
Instances of India quoted the official as saying, including that discussions with the US to finalise a first-phase bilateral commerce settlement are ongoing, with hopes of conclusion by September or October.

A numbers recreation

Whereas the political theatre of Trump’s announcement has captured headlines, commerce analysts say the numbers don’t fairly add up.

On a weighted common foundation, India’s tariffs on US imports stand at 7.7 per cent, in comparison with 2.8 per cent on Indian exports to the US. That’s a niche of 4.9 per cent– a far cry from Trump’s 52 per cent determine, which seems to have been calculated utilizing broader metrics that embrace non-tariff commerce limitations and peak duties moderately than precise utilized charges, in response to a report by JM Monetary.

Essentially the most affected sectors, ought to the 26 per cent tariff be enacted, would possible embrace telecom gear (20 per cent of Indian exports to the US), drug formulations (10 per cent), jewelry (16 per cent), and clothes (10 per cent)– a handful of high-value classes that collectively make up greater than half of India’s $77 billion export basket to America.

With inputs from businesses