The Federation of Indian Chambers of Commerce and Business (FICCI) has expressed disappointment over US President Donald Trump’s determination to impose a 25 per cent tariff together with secondary sanctions on exports from India, efficient August 1.
Reacting to the announcement, Harsha Vardhan Agarwal, President, FICCI, mentioned, “FICCI is disenchanted by the choice taken by the US to levy 25 per cent tariff on exports from India and impose secondary sanctions. Whereas this transfer is unlucky and could have a transparent bearing on our exports, we hope that this imposition of upper tariffs will likely be a short-term phenomenon and {that a} everlasting commerce deal between the 2 sides will likely be finalised quickly.”
Additionally Learn:India-US Commerce Deal: Trump slaps 25% tariff on India from August 1, cites excessive commerce limitations and Russia ties
Commerce relations have depth and potential, says FICCI
Agarwal additional emphasised the importance of bilateral ties. “India and US have a long-standing partnership, which is strengthened by our deepening engagement throughout an array of areas from expertise to defence to vitality and advance manufacturing. There’s a lot our two nations can obtain collectively, and FICCI is assured that following the detailed deliberations which might be presently underway, we’ll see helpful outcomes for each nations when the contours of the ultimate commerce settlement will emerge,” he added.
India has been in lively negotiations for a Bilateral Commerce Settlement (BTA) with the US for the reason that starting of the yr. In response to an IANS report, US calls for have been deemed incompatible with India’s nationwide pursuits, prompting the federal government to carry its floor. A US delegation is predicted to go to India within the latter half of August to renew talks, with hopes of concluding negotiations by September–October 2025.
Additionally Learn:Piyush Goyal meets S Jaishankar after Trump’s 25% tariff transfer
Business seeks long-term commerce pact, not rushed seal
FICCI underscored that the US stays a significant marketplace for Indian exporters, each in items and providers. The business physique reiterated the federal government’s stance that nationwide curiosity will take priority over deadlines. “The intention is to safe a helpful pact reasonably than a hurried deal that offers brief time period profit however might lead to adversarial outcomes in the long run,” the assertion famous.
India, in flip, gives a big marketplace for US firms, lots of which profit from the nation’s demand ecosystem and huge expertise pool.
Additionally Learn:US President Donald Trump calls India ‘buddy’ however criticises commerce imbalance, warns of 25% tariff
Trump’s tariff announcement on Reality Social
Earlier within the day, Trump made the tariff announcement on his platform Reality Social, stating {that a} 25 per cent tariff can be levied on Indian imports beginning August 1, alongside a penalty for India’s continued buy of army gear and vitality from Russia.
“Bear in mind, whereas India is our buddy, we’ve, over time, carried out comparatively little enterprise with them as a result of their tariffs are far too excessive,” Trump wrote in his publish. He claimed that India imposes “probably the most strenuous and obnoxious non-monetary commerce limitations” in comparison with some other nation.
Criticism over Russia ties amid Ukraine struggle
Trump additionally criticised India for its ongoing defence and vitality ties with Russia. “At a time when everybody desires Russia to cease the killing in Ukraine, this stuff should not good,” he mentioned. “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” he added.
Final week, Finance Minister Nirmala Sitharaman indicated that commerce negotiations with the US had been “progressing nicely.” Her feedback got here simply forward of Trump’s tariff announcement.
India final concluded a Free Commerce Settlement (FTA) with the UK. Commerce and Business Minister Piyush Goyal had referred to as the India–UK FTA a “game-changing” pact that brings substantial advantages for farmers, MSMEs, younger professionals, and fishermen.
