‘Unilateral decision, no logic or reason to it’: Senior diplomat on Trump’s 50% tariffs on India

Donald Trump’s tariffs on India are unilateral and are based on no logic or reason, said a senior diplomat on Thursday. This comes after Trump imposed an additional 25 per cent tariff on India, taking the overall tariff to India to 50 per cent. It is one of the highest tariff rates imposed by the US.

Secretary for economic relations in the Ministry of External Affairs, Dammu Ravi, said, “This is a unilateral decision. I don't think there is any logic or reason in the way it is done.” “Perhaps, this is a phase we have to overcome.  The negotiations are still going on. So, we are confident that solutions will be found in the course of time in looking at mutually beneficial partnerships,” he said.

Ravi said that the commerce ministry is working on it and hopes to soon find a solution. “We were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue,” he said. 

The diplomat said India and the US have been strategic partners with a complementary relationship for some time. He underlined that businesses and leaders on both sides are looking at trade opportunities.

The high tariff will not have any detrimental impact on the Indian industry, Ravi said, stressing that it will not pull back India Inc. He added that whenever any country faces tariff walls, it looks for new markets where it can trade. Ravi mentioned that the Middle East, Latin America, Africa and South Asia are among the regions India will target. He said if the US becomes difficult to export to, India will automatically look at other opportunities.

Underlining that all countries are impacted by the tariff decisions taken by US President Donald Trump, Ravi expressed confidence that solutions will evolve for the challenges. He called this a temporary aberration and a temporary problem that the country will face.

Ravi said that in time, the world will find solutions and like-minded countries will seek cooperation and economic engagement that will be mutually beneficial for all sides.

(With PTI inputs)