US Ambassador to India, Eric Garcetti, said that India should reduce its tariffs and that many companies are not coming to India because of the high rates. In an exclusive interview with India Today, Garcetti said that President-elect Donald Trump is right, in some ways. He was referring to Trump’s criticism of India’s high rates.
In the interview, when asked about Trump’s criticisms of India-US trade relations despite his praise for Prime Minister Narendra Modi, Garcetti said: “President Trump in some ways is right. We have to make sure that we have bigger, bolder conversations. During this administration we resolved a hundred percent of our trade disputes, so we have kind of set the table. Now if we are true to our word of wanting to replace our reliance on China, setting up scale for the world not just for our companies, from healthcare to pharmaceuticals to everyday electronics to critical emerging technologies; India is the place to be”
Garcetti said that India, however, needs to rethink its tariffs. “Too many countries are going out of China and not coming to India because tariffs should still be reduced further. Transportation and infrastructure can continue to be built on, as we can see, trademark protection, taxes, training, and talent of the workforce.”
This comes as Trump has reiterated India’s high tariffs. During a speech in Detroit Economic Club last year, before the November elections, Trump said, “Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity. It's a word that's very important in my plan because we generally don't charge tariffs. I started that process, it was so great, with the vans and the small trucks, etc. We really don't charge. China will charge us a 200 per cent tariff. Brazil is a big charger. The biggest charger of all is India.” After that he praised PM Modi for being a “great leader, great man”.
Meanwhile, Commerce and Industry Minister Piyush Goyal, had responded to concerns about a possible hike in imports by the US. He said that the government is not worried about tariffs. He stated that if it is a tariff on China then it only helps India, and if it is a tariff on everybody, then everyone’s on the same boat.
“We will still continue to do well. But I personally believe India is looked upon as a trusted partner by the democratic world,” Goyal said at Business Today's Most Powerful Women 2024 event in Mumbai. Goyal, agreeing that Trump has brought up India’s high tariffs maybe once or twice but also has made it clear that he likes India and wants to expand business with India.