US Treasury Secretary Scott Bessent on Wednesday expressed hope that Washington and New Delhi will eventually find common ground on trade, emphasizing that the world’s largest democracy and the world’s largest economy are ultimately bound to come together.
His remarks came as the Trump administration’s 50% tariffs on Indian imports came into effect today, further escalating trade tensions between the two countries.
“In the end of the day, we will come together. India is the world’s largest democracy and the US is the world’s largest economy,” he said in an interview with Fox Business.
50% Tariffs Take Effect, Covering Majority of Exports
According to an assessment by the Indian Council for Research on International Economic Relations (ICRIER), Trump administration’s tariffs now cover nearly 70% of India’s exports to the US, worth about USD 60.85 billion. As per the experts, exporters highly dependent on the US market may face immediate challenges due to the tariffs.
President Donald Trump, who had earlier dubbed India a “tariff king”, justified imposing a 50% tariff, citing the trade imbalance as well as New Delhi’s continued purchases of Russian crude oil and defence equipment.
PM Modi’s Response To 50% Tariff
In response, Prime Minister Narendra Modi assured that his government would take steps to protect small entrepreneurs, farmers and livestock farmers from any adverse impact. During the recent monsoon session of Parliament, Commerce and Industry Minister Piyush Goyal also said the government was closely studying the implications of the tariff hike and would take all necessary steps to protect national interests.
Sectors Hit Hardest by Tariffs
About 30% of India’s exports to the US, including pharmaceuticals, electronics and select categories, will continue to enjoy duty-free access, but the tariffs are expected to hit labour-intensive sectors hard. Products such as iron and steel, aluminium, passenger vehicles, semi-finished copper and key minerals, however, will remain exempt from the tariffs.