We cannot hurt mutual tariffs India much: GTRI

Prime Minister Narendra Modi and US President Donald Trump joined hands as they make a joint press statement after their meeting at the White House in Washington, DC on Thursday, February 13, 2025. Photo Credit: Reuters

US government’s move to impose mutual tariffs The Economic think tank GTRI said on Friday (February 14, 2025) that there is no possibility of matching the high duties levied by its business partners, as there is a difference in the export profile of the two countries.

Citing an example, Global business research initiative (gTRI) Said that if the US charges a 50% mutual tariff on Indian pistachios because India makes only one charge, then India is happy because it does not export pistachios.

Additionally, for the 75% value of American exports to India, the average tariff is less than 5%, said GTRI founder Ajay Srivastava.

In contrast, India faces high American tariffs on many labor-intensive accessories such as many products, clothing and shoes, between 15–35% on many products, he said.

“Given the difference in the export profile of the two countries, mutual tariffs may not have a significant impact … In the new Trump era, India can wait to see American decision on mutual tariffs in April and then similar measures As it can be answered in June 2019, “Shri Srivastava said.

After talks with Prime Minister Narendra Modi in Washington, US President Donald Trump announced that India would buy more oil, gas and military hardware from the US to reduce trade deficit, but said Washington would not leave New Delhi from mutual tariffs .

On the trade deal, he said that although the details are not yet clear, it may be a limited deal on mutual tariffs, expected to be declared in April.

America has already announced A non-relative tariff of 25% on steel and aluminum.

“This is also not the best time for an FTA (Free Trade Agreement) or a complete trade agreement as the US does not respect FTA. How is the tariff imposed. (American Mexico Canada) provision, “said Mr. Srivastava.

GTRI also stated that the US is not clear that mutual tariffs apply to specific products or entire regions.

On February 13, a White House Fact Sheet said, “US average applied to agricultural goods is 5%. But India’s average applicable MFN tariff is 39%. India also fees 100%tariff on US motorcycles Takes, while we charge only 2.4% tariff on Indian motorcycles. Efforts will benefit China as China is the largest global supplier of industrial goods.

During April-November 2024–25, the US was the second largest trading partner in India, with a bilateral trade of $ 82.52 billion in goods (exports of $ 52.89 billion, import of $ 29.63 billion and $ 23.26 billion business surplus).

During 2021–24, the US was India’s largest trading partner. America is one of the few countries with which India’s trade surplus is.

In 2023–24, the US was the largest trading partner in India, with a bilateral trade of $ 119.71 billion (export of $ 77.51 billion, $ 42.19 billion imports and $ 35.31 billion business surplus) in goods.