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India working to protect its exports amid US tariffs threat: Nirmala Sitharaman
Nirmala Sitharaman acknowledged potential impacts of US tariffs on India, while Piyush Goyal engages in discussions with the Trump administration.
Finance Minister Nirmala Sitharaman said that the tariffs being planned by US will have an impact on India, but Piyush Goyal is currently holding discussions with the Trump administration on the matter, reports news agency ANI. Speaking at a post-budget event in Vishakapatnam, Sitharaman said India is engaging with the US to protect its exports.
She said that India will take a call only after the outcome of the ongoing negotiations is clear.
"Tariff is something the US President has been speaking about. The Commerce Minister (Piyush Goyal) has already gone to the US (to) engage with US officials, including the United States Trade Representative (USTR)," Sitharaman said at a post-budget interaction at Visakhapatnam.
"We will have to see how the Commerce Ministry handles negotiations with the US to ensure that India’s interests are well-represented," she added.
Trump's reciprocal tariffs
US President Donald Trump on Wednesday reiterated that reciprocal tariffs would come into effect from April 2 against all countries that charge high taxes from the country. But Indian officials held out hope for a resolution that could help India escape the tariffs, and eventually culminate in a trade deal by this fall.
Trump said that the strategy aims to address unfair trade practices, including non-monetary barriers, subsidies, and VAT systems. The approach is designed to encourage foreign nations to either lower or eliminate tariffs on US products or establish manufacturing operations in the US, ultimately contributing to its economic growth.
But his tariffs on Canada and Mexico roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment. The tariffs came into effect on Tuesday, but Trump rolled some of them back as soon as the markets tanked.
The halt - which will last until April 2 - offers relief to automakers.
Trump has referred to tariffs as a source of US government revenue and a way to remedy trade imbalances.
The US trade deficit surged to a new record in January, ballooning 34 percent to $131.4 billion as imports rose.
Analysts say the deficit was likely bolstered by gold imports, but that data suggests businesses were also trying to get ahead of tariffs.
