FIEO worried about the impact of tariff on India…
Federation of Export Organizations FIEO said on thursday that the 26 percent US duty imposed on india will undoubtedly affect domestic companies. FIEO director General and Chief Executive Officer (CEO) ajay Sahai, however, also said that india is in a better position than many other countries. He expressed hope that the proposed bilateral trade agreement (BTA) on which negotiations are going on between the two countries will be finalized soon. This can provide relief from these retaliatory duties.
Sahay told news agency PTI, "We have to assess the impact, but looking at the retaliatory duties imposed on other countries, we are among those facing the least duty. We are in a much better position than our major competitors like Vietnam, China, Indonesia, Myanmar etc. We will definitely be affected by tariffs, but we are in a much better position than many other countries.''
US President donald trump has announced a massive 26 per cent 'concessional retaliatory tariff' on India. While announcing the tariff, trump showed a chart which showed the retaliatory tariffs along with the tariffs imposed by countries like india, China, UK and the european Union.
The chart indicated that india has imposed a 52 per cent tariff including 'currency manipulation' and trade barriers'. The US will now charge india a 'concessional retaliatory tariff' of 26 per cent.
The US President said, "India is very, very tough. Very tough. The prime minister (Narendra Modi) has just left here. He is a very good friend of mine, but I said, 'You are my friend, but you are not treating us right. They charge us 52 per cent duty...” The US was India’s largest trading partner from FY 2021-22 to 2023-24. The US accounts for about 18 per cent of India’s total merchandise exports, 6.22 per cent of imports and 10.73 per cent of bilateral trade.
India’s trade surplus (difference between imports and exports) with the US in goods is US$35.32 billion in 2023-24 as against US$27.7 billion in 2022-23, US$32.85 billion in 2021-22, US$22.73 billion in 2020-21 and US$17.26 billion in 2019-20.
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