“India is going to be dropping its tariffs very substantially,” US President Donald Trump claimed on Tuesday, a day ahead of his much-anticipated 'Liberation Day' reciprocal tariff announcements.
Speaking to the media in the White House Oval Office on Tuesday, Trump claimed that India would soon reduce its tariffs, contemplating, “Why didn't somebody do this a long time ago.”observed that “we help everybody, and they don’t help us”.
The US president backed his India tariff reduction claim by citing ‘US pressure’ and ongoing bilateral trade negotiations aimed at addressing the trade imbalance and enhancing market access.
Trump's ‘Liberation Day’ reciprocal tariff announcement move has put the world markets in a chokehold as companies and countries brace for the implications of the US tariff announcement.
Trump has criticised India for imposing "massive" and "restrictive" tariffs on American products, calling India the "tariff king" and accusing it of unfair trade practices.
“We help everybody, and they don’t help us,” Trump complained to reporters on Monday, voicing his spartan win-or-lose philosophy. Following weeks of aggressive rhetoric on tariffs, punctuated by last-minute reversals and subsequent renewed threats, the imposition of import penalties aimed at impacting America's allies, such as Canada and Mexico, has left everyone uncertain about what might come next.
Will Trump impose across-the-board matching tariffs on nations that use protectionism against US exports? Or will the president simply target all goods coming into the country? Or will Trump take a nation-by-nation approach designed to grind out new bilateral arrangements?
The imposition of stringent tariffs, a policy tool that historically played a role in shaping the foreign and economic policies of the United States, is primarily aimed at safeguarding domestic industries.
By increasing the cost of imported goods, tariffs render foreign products less competitive in the domestic market, thereby protecting local businesses and promoting economic self-sufficiency.
(By arrangement with livemint.com)
