Stressing that trade tariffs are a legitimate policy instrument deployed by countries based on their stage of development, Union Finance Minister Nirmala Sitharaman on Thursday said the government was seized of the problems that might arise from the US’ reciprocal tariff plan and is negotiating with the Donald Trump administration, keeping India’s interests on top.

       The minister’s remarks assume significance as the first official response after President Trump’s reiteration of the tariff reciprocity gambit to the US Congress on Wednesday. This comes as Commerce and Industry Minister Piyush Goyal is in Washington for parleys to negotiate some exemptions from tariff shocks and flesh out a bilateral trade deal.

       “Reciprocal tariffs is something about which the US President has been speaking. Commerce Minister Goyal has already gone to the US and will be talking with the US Commerce Secretary and the US Trade Representative, and based on the negotiation, he will have to come back and then we will take a call,” Sitharaman said in Visakhapatnam.

       Noting that Goyal had held several stakeholder consultations before heading to Washington, Sitharaman said: “The interest of all our exporters is well-documented in the commerce ministry… and all of us are constantly giving information there and sharing inputs to protect the interest of exporters.”

       On the potential impact of the reciprocal tariffs on India, she said: “It is only as we progress through the negotiations, we will be able to make an assessment but we keep Indians’ export interest in mind. At the moment, we are seized of the problem.”

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       Responding to Trump’s assertions about India’s high import tariffs, with duties of over 100 per cent on some items, Sitharaman said the current tariffs are designed for different reasons, like protecting certain industries and also the possibility of India’s exports reaching newer markets.

       “So when you are at a stage of development when your industry has to grow, you will tend to make sure that as per the WTO norms, whatever is the trade tariff you can levy, you will levy. So that is how it has been happening, and it is consistent with the WTO,” she said, adding that tariff is a legitimate instrument.

       “Now the question of a bilateral relationship with a country and the tariff discussions with the country concerned, is what we are discussing now between the US and India. So both countries obviously… they will take care of their interests, and we will keep India’s interests on the top and negotiate with them to see how best we can take it forward,” the minister concluded.

       Economic Affairs Secretary Ajay Seth also weighed in on the US tariff question and said: “What others do, we have little control on that, but we have to build our own strengths… as the Budget has identified exports as one of the four engines for our economy and announced an export promotion mission to build our own strengths.”

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