India may cut tariffs on a few high-end goods - such as a special kind of steel, expensive motorcycles, and electronic items - imported from the United States, sources told NDTV Profit Wednesday. Such a move is not likely to have a major impact on the respective domestic industries and this could be confirmed Saturday, when Union Finance Minister Nirmala Sitharaman presents the budget. India imports 20 items from the US on which there are duties in excess of 100 per cent.
All of this comes a day after US President Donald Trump referred to India, China, and Brazil - founding members of the increasingly influential BRICS bloc - as "tremendous tariff makers". Speaking to House Republicans, he said he would not allow this to continue, declaring, "... we're not going to let that happen any longer... we're going to put America first."
"We're going to put tariffs on outside countries and people that really mean harm to us. China is a tremendous tariff-maker, and India, Brazil, and so many other countries. (But) we're not going to let that happen any longer... because we're going to put America first," Trump declared to cheers.
READ | Donald Trump Fires "Tremendous Tariff-Maker" Warning At India, China
Trump's Tuesday broadside on India (and China and Brazil) and 'high tariffs' echoed comments made in September, in the build-up to the November 20 election. "We're going to do reciprocal trade. If anybody charges us 10 cents (in duties)... if they charge us $2... if they charge us a 100 per cent or 250 per cent... we charge them the same thing," he told his supporters.
"These people (referring to Indians, Chinese, and Brazilians) are the sharpest... they use it against us. But India is very tough. Brazil is very tough... China is the toughest of all... but we're taking care of China with the tariffs," he said.
The remarks then were made days before Prime Minister Narendra Modi's visit, although that was when Joe Biden was still President. And now, days after his "tremendous tariff-makers" swipe, Mr Modi is scheduled to visit the US again.
High tariffs on goods imported into the US - specifically from China - were a frequent refrain during Trump's campaign. He also warned of "100 per cent tariffs" on BRICS nations to shut down talk of not using the dollar as the common currency.
Trump's tariffs tirade has been seen by many as a clear economic agenda, questionable though the means may be, and that is to jumpstart manufacturing in the US. By marking up the prices of key commodities like steel, semi-conductors, medicines, etc., he is hoping to do just that. "Under the 'America First' economic model, as tariffs on other countries go up, taxes on American workers and businesses will come down and massive numbers of jobs and factories will come home."
READ | How Donald Trump Is Using "Tariffs" As A Weapon
The other perspective is 'tariff as a weapon', a point-of-view underlined by Trump's clash with Colombia over deportations. The South American country initially refused to accept a plane loaded with 'illegal immigrants'.
READ | "Cooperate Or...": In Colombia Face-off, Trump's Strong Message
The Trump administration responded by slapping a massive 25 per cent tariff on goods from there, leaving Colombian President Gustavo Petro with no option but to relent. Trump later declared the world would do well to look at this exchange.
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