Washington DC [US]: US Commerce Secretary Howard Lutnick avoided answering a question about tariffs on India when approached by media, walking away instead of responding.
The avoidance comes in the wake of former US President Donald Trump’s latest announcement of new import tariffs, including a 26% tariff on India. The decision was revealed at the Make America Wealthy Again event on Wednesday (local time), where Trump justified the move by alleging imbalances in trade policies between India and the US.
Trump on US-India Trade Imbalance
Calling Prime Minister Narendra Modi a “great friend,” Trump claimed that India charges the US 52% in tariffs while the US imposes minimal duties in return.
“India is very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52%, and we charge them almost nothing…” Trump stated.
He also pointed to disparities in motorcycle tariffs, saying:
“The United States charges only a 2.4% tariff on motorcycles, while Thailand charges 60%, India 70%, and Vietnam 75%.”
US to Impose 25% Tariff on Foreign Automobiles
Trump further announced that a 25% tariff would be imposed on all foreign-made automobiles, citing threats to the US industrial base and national security.
“Such horrendous imbalances have devastated our industrial base and put our national security at risk. I don’t blame these other countries at all for this calamity. I blame former presidents and past leaders who weren’t doing their job… Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles,” Trump declared.
Indian Exports to Be Hit Hard
According to trade experts, Trump’s tariffs are expected to significantly impact Indian industries such as textiles, engineering goods, electronics, and gems & jewellery.
Ajay Bagga, a banking and international stocks expert, told ANI that these tariffs are based on “exaggerated calculations,” incorporating customs duties, alleged currency manipulation, and GST. He described the shift in US trade policy as moving from “America First” to “America Alone.”