New Delhi: A day after United States President Donald Trump announced a steep 25 percent tariff on Indian goods, he doubled down on his decision, calling tariffs the reason behind America’s economic revival. In a strongly worded post on his social media platform, Truth Social, Trump said, “Tariffs are making America great and rich again.”

The US president claimed that for years, the country had suffered from unfair trade practices by others.

“Coupled with really dumb, pathetic, and crooked politicians, (the tariffs) were having a devastating impact on the future, and even the survival, of our country,” he wrote.

Trump added that the situation had now changed: “The tide has completely turned,” noting that the United States had successfully countered what he called an “onslaught of tariffs against it.”

Celebrating the shift in trade policy, Trump said, “ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE ‘HOTTEST’ COUNTRY ANYWHERE IN THE WORLD. CONGRATULATIONS TO ALL!”

Trump’s criticism of Indian trade practices

Alongside the announcement of new duties, Trump accused India of maintaining excessive trade restrictions. He claimed that India’s tariffs were “among the highest in the world” and described the country’s non-monetary trade barriers as “the most strenuous and obnoxious” globally.

Trump also said that the high tariffs were one of the key reasons for the limited trade between the United States and India over recent years.

Centre responds, reviews tariff impact

The Indian government, responding to the announcement, said it had taken note of the new measures and is currently assessing the potential consequences.

The Ministry of Commerce and Industry released a statement saying India and the United States have been engaged in talks for months to reach “a fair, balanced, and mutually beneficial bilateral trade agreement.” The ministry reiterated that India remains committed to that goal.

“The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” the statement said, adding that all necessary steps would be taken to safeguard India’s national interest.

The 25 percent tariffs on Indian exports and the yet-unspecified penalty related to India’s energy purchases from Russia are scheduled to take effect from 1 August. 
(with agency inputs)