Govt in touch with exporters to minimise US tariff impact, say sources

The government is reportedly in touch with exporters to minimise the impact of US tariffs announced by President Donald Trump. The Commerce Ministry is also expected to meet exporters today, said sources to Business Today TV.

The Union Cabinet will be apprised about the Trump tariffs in a meeting, sources said. The cabinet is also expected to discuss India’s strategy as Trump’s 26 per cent tariffs come into effect today. 

Trump had announced a basic 10 per cent tariff on all its trading partners, moving up to as much as 50 per cent for some. It imposed a tariff of 26 per cent on Indian goods. Separately, it announced a tariff of 25 per cent on the auto, steel, and aluminium sectors. Trump has said that he will impose major tariffs on the pharmaceuticals sector too. 

Meanwhile, government sources had earlier told news agency Reuters that India is unlikely to retaliate against Trump’s tariffs. Citing ongoing talks for a trade deal, officials note that India sees potential benefits in these negotiations, positioning itself favourably compared to countries like China and Vietnam. The aim is to secure a trade agreement by autumn, following recent discussions.

External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio had a telephonic call on Monday to discuss reciprocal tariffs and trade among the two countries. Jaishankar and Rubio also discussed the importance of an early conclusion to the bilateral trade agreement. 

Additionally, the Trump administration identified India as one of the 50 countries that were willing to lower tariffs, apart from Argentina, Vietnam, and Israel.