New Delhi, April 3 (PTI) India will wait for and look at the status leaving from the implementation of additional import duties by the US on global trade and will not take any action in a hurry as the US can face problems with its domestic industry, said government sources.
On 2 April, US President Donald Trump announced a mutual tariff of 11–49 percent in about 60 countries including India and China. This will be applicable from 9 April.
The official said that there are both challenges and opportunities for India as many of its competitive countries are in exports, such as China Vietnam, Bangladesh, Cambodia and Thailand, face high duties.
“As a country we need to look at the situation and do not need to be in a hurry. It is something new. It is unprecedented. The American industry will also be angry with the move and there will be challenges. We need to wait, inspect and watch because we do not need to see that it is for the future. What is in our favor.”
The duties announced by the US aims to cut its trade deficit and promote manufacturing.
At 27 percent of the duty on India, he said that only 6-7 areas such as shrimp and carpets can face challenges with steep taxes, but most of other areas such as pharma and electronics will get opportunities to increase shipment as competitive nations will have to face higher duties than India.
According to some calculation, about 25 percent of India’s exports are exempted from taxes and the rest are “mixed landscapes”.
He also said that the price-sensitive goods like gold jewelery and carpets will have to face the heat of duties.
From 2021–22 to 2023-24, America was India’s largest trading partner. The US accounts for about 18 percent of India’s total goods exports, 6.22 percent in imports and 10.73 percent in bilateral trade.
Along with the United States, in India in 2023–24, goods had a trade surplus of USD 35.32 billion (difference between imports and exports). It was USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21 and US $ 17.26 billion in 2019-20.
In 2024, India’s main exports to the US were included to include drug formulation and biological (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), USD 3.2 billion (usD 3.2 billion). Iron and Steel (USD 2.7 billion).
Import includes crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion).
According to business experts, China will face 54 percent of tariffs, there is a possibility of dumping goods in India.
The Ministry of Commerce is carefully investigating the implications of announcements made by the US.
They are consulting stakeholder to take their feedback and are engaged with line ministries on development to assess the impact.
Asked about the impact of these duties on India’s agricultural exports to the US, a source said that Indian would consume goods despite migrant prices in the US.
In terms of rice exports, while the current American tariffs are 9 percent, India maintains an edge against Vietnam and Thailand despite an increase of 27 percent.
In 2024, India’s fish, meat, and processed seafood exports were at USD 2.58 billion. Processed food, sugar and cocoa shipment was US $ 1.03 billion.
Similarly, exports of grains, vegetables, fruits and spices of the country were given a price of USD 1.91 billion last year.
Dairy products of US $ 181.49 million were sent to the US in 2024, while Edible Oil Ship was 199.75 million USD.
Exports of alcohol, wine and spects were collected in US $ 19.20 million. PTI RR CS TRB
This report is auto-generated with PTI News Service. ThePrint does not have any responsibility for its content.