Tuesday, April 22, 2025

Centre’s Clarification in Rajya Sabha: No Tariff Reductions Promised to the US

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In a significant update to the Rajya Sabha, the Indian government addressed the concerns raised by U.S. President Donald Trump’s recent statements regarding tariffs on American goods. Commerce Secretary Sunil Barthwal responded to questions and clarified that India has not made any commitment to reduce its tariffs as claimed by the U.S. President.

Trump’s earlier statements, which appeared to suggest that India had agreed to lower its tariffs, were questioned in Parliament. India, according to Barthwal, has been engaged in trade negotiations with the United States, but no official or formal agreements have been signed regarding tariff reductions. “The negotiations are ongoing, and the final outcome is yet to be determined,” Barthwal said, noting that India’s position on tariffs is consistent with its broader economic strategy.

The U.S. President’s comments came after he criticized India for having high tariffs on U.S. goods, calling them “massive” and unfair. India, in response, stressed that its tariff policies were in line with global trade practices and aimed at protecting domestic industries. Barthwal highlighted that the tariffs are not designed to be barriers to trade but are, in fact, a necessary measure to ensure that India’s markets are not flooded with cheap imports, especially in sectors like agriculture and textiles, which are crucial to India’s economy.

The government’s position in Parliament underscored its commitment to protecting domestic industries while also pursuing free and fair trade policies that benefit both India and its trading partners. The Centre also emphasized the importance of maintaining sovereignty over trade negotiations and not yielding to external pressures.

While India continues to engage in bilateral trade talks with the U.S., there is no indication that India is willing to unilaterally reduce tariffs without reciprocal trade benefits. Barthwal assured the Rajya Sabha that India’s economic policy would always prioritize national interest, including protecting jobs, industries, and the broader economic fabric.

Furthermore, the Centre made it clear that India is open to negotiation, but it would not entertain any demands that could harm the country’s economic stability. India’s trade with the U.S. is substantial, and the government has made efforts to balance trade relations, ensuring that both sides can benefit without compromising India’s long-term economic goals.

The statement in Rajya Sabha was a direct rebuttal to the claims made by President Trump, who had previously stated that India was willing to make major tariff concessions in return for trade deals. The Centre’s firm position in Parliament reflected a broader policy framework aimed at safeguarding India’s strategic interests in the global market.

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