How US tariff changes will impact India? Nirmala Sitharaman explains
What's the story
Finance Minister Nirmala Sitharaman has said it is "too soon" to comment on the impact of recent tariff changes in the United States on India's economy. The statement comes as the government continues to monitor the evolving situation. Speaking in New Delhi, Sitharaman said that the Ministry of Commerce and Industry is actively studying how these US tariff revisions could affect bilateral trade, investment flows, and key export sectors.
Tariff escalation
US Supreme Court struck down 'reciprocal' tariffs
On February 20, the US Supreme Court struck down 'reciprocal' tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). In response to this ruling, Trump issued an executive order on February 21 imposing a new 10% global tariff on imports from all countries starting February 24. Just a day later, he raised the proposed global tariff rate from 10% to 15%, strongly criticizing the court ruling as "anti-American."
Market oversight
Gold and silver imports not at alarming levels: Sitharaman
Sitharaman also stressed that the Reserve Bank of India (RBI) is keeping a close watch on gold and silver prices. She said, "Gold is always an investment for households, seen seasonal spikes during festival season. We are watching it, but not seeing that prices have gone beyond certain limit." The Finance Minister further clarified that imports of gold and silver aren't at alarming levels with global central banks purchasing large quantities.
Business focus
Banks urged to focus on core business
On the issue of mis-selling insurance products, Sitharaman urged banks to "concentrate on their core business." She also encouraged corporate India to participate in the country's growth story by increasing investments. The Finance Minister's comments came after the RBI's Central Board meeting where RBI Governor Sanjay Malhotra and Union Minister of State for Finance Pankaj Chaudhary were present.