desk
Share
America is going to implement its retaliatory tariffs for the whole world from Wednesday. This will have an impact on the whole world including India. The Indian stock market was also not untouched by its impact and on Tuesday the Sensex fell by almost 1400 points and the NSE Nifty saw a decline of 353 points. To avoid its impact, the Indian government has prepared its own shield.
White House issued a statement
The White House said on Tuesday that President Trump's much-anticipated tariffs are going to be implemented earlier than some people expected. As per the earlier announcement, the US will impose reciprocal tariffs late night on April 2 or early Thursday morning. Keeping in mind the impact of this on India's trade, the Ministry of Commerce and Industry will announce its strategy.
It is worth noting that US President Donald Trump had announced that the US will impose tariffs equal to those imposed by different countries. Trump, who has been calling April 2 as Liberation Day, had claimed that India is going to reduce its tariffs substantially.
Trump said this about tariffs on India
Trump said, "Some time ago I heard that India is going to reduce its tariffs significantly. I asked why no one was reducing it earlier. Many other countries are also going to reduce their tariffs. The EU has already reduced the tariff on cars by 2.5 percent."
Considering Trump's statement and his actions so far, the imposition of retaliatory tariffs is considered certain. India is currently working on its strategy keeping in mind the three effects of retaliatory tariffs and whatever strategy is required according to the circumstances, the same will be announced on April 3. No formal announcement has been made by the Commerce Ministry so far.
India will not suffer any loss due to tariff
According to sources, if Trump's retaliatory tariff is sector-wise, then India's strategy will be different and then India will probably not suffer any loss because the US does not export the goods that India exports.
The second way of retaliatory tariffs can be based on the total trade of the country. Here India may have to adopt a different policy, because India exports about $36 billion more than America and the Trump administration would want to compensate for this.
In a reply in the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said the Indian government is continuing discussions with the US to make bilateral trade relations mutually beneficial and fair. Industries are being encouraged to identify new opportunities that could be affected by tariffs on existing supply chains.
There is no impact on trade right now due to retaliatory tariffs
According to sources, if any form of reciprocal duty is imposed, it will not affect India's exports at present, because the supply chain between two countries does not suddenly stop. Secondly, work has started on taking forward the talks on the Bilateral Trade Agreement (BTA) between India and America. Its first phase is to be completed by this year. In such a situation, India will get time to reduce or increase its duty according to America.
Read More: 'Thank you India', India eliminated Abdul Rauf Azhar; America said - justice has been done
--Advertisement--
