India Responds to Trump’s 50% Tariff: Govt. Calls Impact ‘Short-Term’, Outlines Key Relief Measures

Centre has stated that Trump’s 50% tariff is not going to have ‘long run loss’.

A day after US President Donald Trump’s 50% tariffs have come into impact, the Union Commerce Ministry on Thursday revealed its plans to expedite the rollout of an export promotion mission to assist the exporters. The ministry made it clear that Trump’s tariffs on Indian items is not going to result in a “very long-term loss”.

What would be the fast influence of Trump’s 50% tariffs on Indian economic system?

“It’s an understood factor that fifty% tariffs are going to influence commerce. There can be an influence on the textile, chemical substances and equipment sectors within the brief run, but it surely is not going to be a really long-term loss. We are attempting to expedite the rollout of the Export Promotion Mission (EPM) as quickly as potential, so that it’ll give some impetus and help to the business. We have to create resilient provide chains, whether or not these are export provide chains or import provide chains,” an official from the Commerce ministry instructed ANI.

ALSO READ: How do 50% tariffs on India influence US economic system? Will it elevate inflation, throw 1000’s out of jobs?  

The ministry stated that imposition of fifty per cent tariffs by the US could have a short-term influence on India’s exports, significantly in sectors resembling textiles, chemical substances, and equipment. Nevertheless, it asserted that the long-term impact on general commerce and GDP will stay restricted.

The ministry has expressed “gradual orders and delayed funds” will result in liquidity constraints because the fast impact of the tariffs. “Within the brief run, their orders will decelerate. The cash that they should get again from their exports may even decelerate. So they may face some liquidity crunch and can be below monetary pressure to run their operations,” the official stated.

What’s the govt doing to minimize the influence of Trump tariffs?

The federal government is prioritising an accelerated rollout of the Export Promotion Mission (EPM) to cushion the influence of the tariff hike. “Quick rollout of EPM will fill this void and provides some impetus and help to the business. That’s one thing we’re specializing in,” the official added.

The federal government can also be working to spice up exports by e-commerce platforms, which it believes may also help Indian exporters faucet international markets sooner. “By our embassies and market entry initiatives, we are going to help business delegations to create extra B2B connections and open up new market alternatives,” the official added.

FAQs

Q1. What has commerce business stated about Trump’s 50% tariff?

The Union Commerce Ministry has stated that the impact of Trump’s 50% tariff on Indian business can be “brief time period” because it is not going to have “long run loss.”

Q2. How is govt dealing with tariff?

The federal government is prioritising an accelerated rollout of the Export Promotion Mission (EPM) to cushion the influence of the tariff hike and boosting exports by e-commerce platform.

(With inputs from ANI)