Hope Brightens for India to Escape Trump Reciprocal Tariff
US President Donald Trump with PM Narendra Modi Image credit MEA
Trump Says Some Countries May Get Breaks from Tariffs
By TRH News Desk
New Delhi, March 25: US President Donald Trump’s remarks of “some countries may get breaks” brightened hopes that India may escape the incoming reciprocal tariffs on April 2. India and the US are engaged in hectic parleys for a trade deal.
“Not all the new tariffs would be announced on April 2. I may give a lot of countries breaks on tariffs,” Trump remarked during his interactions with White House correspondents.
The statement of the US President lacked specifics. But lately Trump has been speaking positively on India. He also posted Prime Minister Narendra Modi’s podcast with American podcaster Lex Fridman on his social media platform Truth Social.
Soon, Modi also joined his social media platform. Reports state that there is a surge in new users on ‘Truth Social’ from India in recent days. Trump’s Truth Social is a listed company while having never made profits per reports.
“The US would impose tariffs on autos, pharmaceuticals and aluminum in the very near future. All those products in the event of wars or other problems are needed,” Trump also stated. Modi and Trump speak positively of each other.
The fresh batch of statements by Trump is being seen as his bid readjust the tariff measures. Reports said that the April 2 reciprocal tariffs may be on limited subjects. Experts stated that Trump is using threats of reciprocal tariffs for bargaining with countries.
India has already lowered duties on a host of goods. Negotiations are underway for a trade deal between India and the US. Indications of year-end trade deal have been given in the past few weeks.
Trump reiterated that “countries can still avoid tariffs by lowering duties on their parts”. This statement also suggests that India may buy extended time to avoid reciprocal tariffs from the US.
But Trump asserted in his remarks to the media that tariffs would come on automobiles. He also praised the move of the South Korean automaker Hyundai to step up productions in the US with a fresh investment of $21 billion.
India’s Tata Motors is known to have big exposure to the US market. Tata’s JLR is a competitor of billionaire Elon Musk’s Tesla.
Late Ratan Tata had spoken of setting up a production facility in North America in 2016. But the plan is yet to take an effect.
Trump’s readjustment in reciprocal tariff plan has also come amid warning by US Federal Reserve Chairman Jerome Powell of the economy possibly taking a hit.
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