President Trump initiated a tariff war by imposing heavy duties on Canada, China, and Mexico. The tariffs, enacted on February 1, include 25% on Canadian and Mexican goods and 10% on Chinese imports. In response, Canada imposed 25% retaliatory tariffs on $20 billion worth of American imports.
Despite Trump’s prior criticisms of India’s tariffs, New Delhi is not included on his tariff list. During his campaign, Trump labeled India a “tariff king” for its high import duties. India’s 2025 Union Budget aims to address this by reducing import duties on products that could help U.S. firms like Harley-Davidson and Tesla.
Finance Minister Nirmala Sitharaman reduced customs duties for high-end motorcycles, cars, and smartphone parts. Motorcycle duties for engines up to 1600 cc dropped from 50% to 40%, with larger bikes seeing deeper cuts. Tariffs on luxury cars over $40,000 were slashed to 70% from 125%.
India’s Finance Secretary, Tuhin Kanta Pandey, highlighted the decreased average tariff rate to 10.6%, down from approximately 11.55%. He stated the removal of previous rate slabs as a signal to showcase India as a nation with lower tariffs. Indian officials are readying a response plan if the US considers imposing tariffs in the future.
In India, discussions are happening to prepare for potential US tariffs. Pandey mentioned it’s too early to predict the form or certainty of these duties. Srivastava noted tariff cuts signal a move supporting US exports.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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