Finance Minister Nirmala Sitharaman has said that the new tariffs planned by the US could affect India. However, Commerce Minister Piyush Goyal is currently speaking with US officials, including the Trade Representative, about this issue. Sitharaman spoke at a post-budget event in Visakhapatnam and mentioned that India wants to protect its exports.
She said India will make decisions based on the results of these talks. “Tariffs are something the US President is discussing. Piyush Goyal has gone to the US to talk to officials about this,” she explained.
Recently, President Donald Trump stated that starting April 2, he will impose tariffs on countries that have high taxes on US imports. Indian officials believe there might be a way to resolve this issue, possibly leading to a trade deal by this fall.
Trump’s strategy aims to tackle unfair trade practices, such as subsidies and high taxes, to encourage other countries to lower their tariffs on US products. However, Trump’s tariffs on countries like Canada and Mexico have caused a lot of uncertainty, making businesses worried and affecting consumer confidence and investments.
Although these tariffs began on Tuesday, Trump quickly rolled some back when the stock market fell. The halt, which will last until April 2, gives some relief to car manufacturers.
Trump sees tariffs as a way to earn money for the US government and to fix trade imbalances. Recently, the US trade deficit reached a record high of $131.4 billion, a big jump compared to last year. Analysts believe that this increase was driven by a rise in gold imports, but also by businesses trying to prepare for the new tariffs.
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