US Tariffs on India: Implementation Delayed, Exporters Urge Government Intervention

US Tariff on India: Indian exporters are increasingly worried following the announcement of US tariffs. They have urged the government to intervene in the matter as soon as possible. The Trump tariffs will come into effect on India from 7 August.

US Tariff on India: US President Donald Trump had imposed a 25% tax on India, but reports now indicate that the US has deferred the 25% tariff on India for seven days. This is being seen as temporary relief, but experts have warned of a negative impact on the country's economy, potentially causing a 0.3% decline.

Increased Concerns Among Indian Exporters

The announcement of the US tariff has heightened anxieties among Indian exporters. Handicraft, leather, garment, silk, brass, and jewellery businesses are particularly worried. They have urged the central government to intervene swiftly. American buyers have either stopped placing orders or are cancelling existing ones.

India Will Not Bow to Pressure

The Indian government has responded to the US tariff. Union Commerce Minister Piyush Goyal reacted to President Trump's description of India's economy. Goyal stated that India is the world's fastest-growing economy and will soon become the third-largest. His message was clear: India will not yield to pressure and will engage in fair trade with the world. Experts say Goyal's statement demonstrated India's resilience and confidence, its desire for respectful and equitable negotiations.

Meanwhile, Trump's tariff has sparked a political controversy. Commenting on President Trump's statement, Leader of the Opposition and Congress leader Rahul Gandhi in the Lok Sabha said that everyone except Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman knows that India has a 'dead economy'. He blamed the BJP for the economic downturn, claiming that any trade agreement with the US would be on Trump's terms and that Prime Minister Modi would simply follow the US President's instructions.

‘Dead Economy’ versus ‘Dead Hand’

Trump suggested that India and Russia could bring down their 'dead economies'. Noting the negligible trade between Russia and the US, he advised leaving things as they are, adding that Russia's former President Medvedev was entering a dangerous area. Medvedev responded sharply, suggesting that Trump should rewatch his favourite zombie films and remember how dangerous a non-existent 'dead hand' could be. 'Dead hand' refers to the Cold War concept of Soviet automated nuclear retaliation, a system that could theoretically launch a counterattack even after the destruction of the Russian leadership.

Threats Issued Upon Entering Office

Following his re-election, Donald Trump announced tariffs on several countries on 2 April, but deferred their implementation for seven days until 31 July. He has now again extended the implementation date by a further seven days. China responded most forcefully to the US tariff policy. When Trump announced a 145% tariff on China, China retaliated with a 125% tariff. In May, both countries reduced tariff rates through mutual agreement and initiated trade negotiations.