US President Donald Trump has announced new tariffs from the White House. A 10% basic tariff started on Saturday. For India, a 26% tariff will begin on April 9.
An Indian government official said this may reduce demand in the US, but India has some advantages. These include low manufacturing costs and cheaper commodities.
The US has imposed higher tariffs on China, Vietnam, Thailand, and Indonesia. This has raised fears that Chinese products might flood the Indian market. India is keeping a close watch.
The official said the Customs department and BIS are ready to act if dumping happens. A high-level meeting was also held in Delhi to discuss the issue.
India is talking to the US about a trade deal. Seven Free Trade Agreements (FTAs) are being worked on, and talks with the UK are going well.
The official also said India is not a currency manipulator. In FY24, India had a $36.8 billion trade surplus with the US. WTO Chief Ngozi Okonjo-Iweala has asked countries to solve trade issues together. She warned that global trade may shrink by 1% due to these tariffs.
Comments