India calls Trump’s new tariffs ‘a combined bag’ – Firstpost

India is weighing its response to a contemporary 26 per cent tariff proposal unveiled by US President Donald Trump in a sometimes 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 nations, however Indian officers seem unfazed, insisting that the choice, whereas critical, will not be 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 powerful. Very, very powerful. The Prime Minister simply left. He’s a terrific pal of mine, however I mentioned, ‘You’re a pal 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 at the moment assessing the influence of the proposed tariff, with the implications underneath shut evaluation. “It’s a combined bag and never a setback for India,”
Occasions 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 spot 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 boundaries and peak duties relatively than precise utilized charges, based on a report by JM Monetary.

Essentially the most affected sectors, ought to the 26 per cent tariff be enacted, would seemingly embrace telecom tools (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 companies