Key Points

Speaking on the issue, Singh said, "What America did is very wrong. It is unjustified. The reasons they have given and the allegations they have made against us are entirely wrong. There are many countries that import oil from countries that America objects to. But did America implement such tariffs on those countries?"

He further assured the public, stating, "Our country's economy is strong. Our government is doing its best to ensure that its impact does not affect our countrymen at all."

The 50 per cent tariffs on Indian goods, imposed by the Donald Trump administration, came into force on Wednesday following a notice by the US Customs and Border Protection (CBP).

The move poses serious challenges for India's US-oriented exporters, with nearly 70 per cent of Indian exports, worth USD 60.85 billion, exposed to elevated duties, according to an analysis by ICRIER.

US President Trump, who has on several occasions described India as a "tariff king," cited the trade deficit with India and New Delhi's continued purchases of Russian oil and military equipment as reasons for the move.

Initially, he had announced 25 per cent tariffs on Indian goods, even as hopes for an interim India-US trade deal were being considered to avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.

Meanwhile, Prime Minister Narendra Modi asserted that his government would shield small entrepreneurs, farmers, and livestock rearers from the impact of these tariffs, highlighting efforts to protect vulnerable sections of the economy.

The immediate impact of the recently imposed US tariffs on Indian exports may appear limited, but the secondary and tertiary effects on the economy pose significant challenges that must be addressed, as highlighted in a report by the Department of Economic Affairs under the Ministry of Finance.

According to the report, the initial impact on exports is contained; the broader effects could emerge in areas such as supply chains, inflationary trends, and the competitiveness of Indian goods in global markets. It stated, "While the immediate impact of recent US tariffs on Indian exports may appear limited, their secondary and tertiary effects on the economy pose challenges".To navigate the challenging global trade environment, the Prime Minister has announced a set of policy initiatives aimed at boosting growth and strengthening the economy.

A key step is the creation of a Task Force for Next-Generation Reforms, which will work towards simplifying regulations, lowering compliance costs, and fostering a more enabling environment for start-ups, MSMEs, and entrepreneurs.

- ANI