Addressing a joint committee meeting in the US Congress, President donald trump said that other countries have been imposing high taxes against us for decades. Now it is our turn. We should use them against those other countries. Other countries including the european union, china, Brazil, india, Mexico, and canada collect more taxes than we collect. This is very unfair. india collects more than 100 percent vehicle tax from us. He said that the reciprocal taxes of the US on goods from countries including india and china will come into effect immediately from april 2. canada, Mexico, and china have already faced US taxes. Whereas india has so far escaped Trump's tax target. But india will not be able to escape the US tax from april 2. Trump's threat of reciprocating tariffs from april 2 has created tension in India's export sectors, from automobiles to agriculture.
.jpg)
Citi Research analysts estimate that Trump's move could cost india $7 billion a year. india exported goods worth $74 billion to the US in 2024. india imposed an average tariff of 11 percent on goods imported from the US in 2023. This would be about 8.2 percent higher than the US tariffs on indian exports, Citi estimates. India's exports to the US could fall by $2 billion in fiscal 2026 if the US implements the reciprocating tariffs, india Ratings and Research said last week. Realizing the seriousness of Trump's reciprocal tax, indian Commerce minister Piyush Goyal canceled meetings scheduled until march 8 and left for the United States. There, he met US Commerce Secretary Jamieson Greener. During the trip, Goyal is expected to seek clarification on US reciprocal taxes to assess the impact on India. india is ready to talk about tax cuts for industrial products including automobiles and chemicals. However, india is resisting US pressure to reduce taxes on agricultural products. This is because the tax cut will affect lakhs of poor farmers. To ease trade tensions, india has already reduced taxes on many goods. For example, india has reduced the duty on high-end motorcycles imported from the US from 50 percent to 30 percent and on bourbon whiskey from 150 percent to 100 percent. In addition, india has promised the US to consider other tariffs, increase energy imports, and purchase more defense equipment.
click and follow Indiaherald WhatsApp channel