'Impose reciprocal tariffs on US': Indian trade body urges Modi
What's the story
The Chamber of Trade and Industry has urged Prime Minister Narendra Modi to impose reciprocal tariffs on the US. The demand comes after US President Donald Trump announced a 25% tariff on Indian goods. The new levy is in addition to another 25% tariff imposed by Trump on India's purchases of Russian oil, taking the total duties to a whopping 50%.
Trade imbalance
Tariff regime could disrupt global trade
The Chamber of Trade and Industry has voiced its concerns over the US's aggressive tariff regime. They fear that a series of such measures from the Trump administration could create an imbalance in global trade. In response to these developments, PM Modi reiterated India's commitment to protecting its farmers' interests, even if it comes at an economic cost.
Farmer focus
PM Modi stands firm on protecting farmers' interests
At the MS Swaminathan Centenary International Conference in Delhi, PM Modi emphasized that India's top priority is its farmers. He said, "India will never compromise on the interests of farmers, fishermen, and dairy farmers." The Prime Minister acknowledged that this could have economic repercussions but remained steadfast in his commitment to protecting these sectors.
Sanction warning
Trump hints at more secondary sanctions against India
Responding to a question about why India was targeted for penalties over its business with Russia, Trump hinted at more secondary sanctions. "It's only been eight hours. So let's see what happens," he said, adding that there would be "a lot more...You're going to see so much secondary sanctions." This could mean further economic pressure on India from the US.
Tariff justification
Tariff hike order and its implications
The White House's order for the tariff hike cites national security and foreign policy concerns, among other trade laws. Trump claimed that India's imports of Russian oil pose an "unusual and extraordinary threat" to the US. The first tariff came into force on August 7, while the second will be effective after 21 days. It will apply to all Indian goods imported into the US, except those already in transit or those meeting specific exemptions.