Amid United States (US) President-elect Donald Trump calling India the ‘biggest’ import tariff charger, Finance Minister Nirmala Sitharaman on Tuesday said she may roll back the increased tariffs on products that do not harm the domestic industry.
“I will lift tariffs on them provided it doesn’t, intended or unintended, hurt my own capacity to produce. I will have to balance the two,” she said at an event hosted by Republic Media Network.
According to Sitharaman, she has the responsibility to protect existing domestic companies producing goods locally, while balancing the needs of those dependent on imports.
Trump has repeatedly criticised India, calling it a high-tariff nation. In 2020, he referred to India as the ‘tariff king’. More recently, he described India as the ‘biggest charger’ of tariffs on foreign goods and an ‘abuser’ of import tariffs. He also stated that the US would impose reciprocal taxes if he is re-elected.
Sitharaman further said that India’s decision to raise import duties is not intended to ‘control imports’. “It is possible to explain every tariff that we have levied,” she added.
India’s trade relationship with the US is crucial, as the US is India’s largest trade partner and export destination. It is also India’s fourth-largest source of imported goods.
More From This Section
PSBs register strong business growth of 11% in H1 FY25, says FinMin
October retail inflation hits 14-month high at 6.21%, food prices soar 11%
Premium
As kharif harvest gains momentum, what's in store for crop prices?
Premium
India looks to establish standardised negotiation process for trade deals
Premium
PMO launches new maritime strategy, to infuse funds into port sector
Trade between the two countries has been robust and continues to grow. During the financial year 2023-24, the size of bilateral merchandise trade stood at nearly $120 billion. The trade balance has been in favour of India, with a surplus of $35.3 billion.
Overall bilateral trade in goods and services reached $190.1 billion for the calendar year 2023. As for investment, during FY24, the US was the third-largest source of foreign direct investment (FDI) into India, with inflows worth $4.99 billion, accounting for almost 9 per cent of total FDI equity inflows.
Also Read
Sitharaman to meet state FMs for pre-Budget, GST Council meet on Dec 21-22
AIIB should strive for more innovative financing models: FM Sitharaman
Manickam Tagore writes to Sitharaman over LIC's policy restructuring
Govt to decide soon on Rs 100 crore credit guarantee scheme for MSMEs: FM
Patriarchy didn't stop Indira Gandhi from becoming PM: Nirmala Sitharaman