Union Finance Minister Nirmala Sitharaman stated that it is premature to evaluate the effects of the recent tariff adjustments by the United States. She mentioned that the commerce ministry is currently assessing the situation.
The remarks from FM Sitharaman came in light of escalating trade tensions following a US Supreme Court ruling against previous import tariffs imposed during Donald Trump’s administration. President Trump subsequently declared a 10% tariff on imports from all nations, including India, effective from February 24 for 150 days, which was later raised to 15%.
When questioned about the potential repercussions of these tariff modifications on the Indian economy, FM Sitharaman expressed that it was too early to provide a definitive comment. She informed reporters that the commerce ministry is analyzing the circumstances, and a delegation will determine the appropriate timing for further trade discussions.
Finance Minister Sitharaman emphasized India’s dedication to entering into trade agreements with various nations to enhance global market access. She highlighted that India has already inked trade deals with countries like Australia, New Zealand, the UAE, Qatar, Oman, and entities such as the EU and the UK.
FM Sitharaman reiterated India’s commitment to engaging with global markets to ensure economic benefits from international trade. She addressed concerns regarding the surge in gold prices, attributing it mainly to increased purchases by central banks worldwide.
Sitharaman explained that many countries, particularly their central banks, are investing in gold and silver as a form of reserve. She noted that gold has traditionally been a favored investment among Indian households, with demand typically rising during festive periods.
Assuring that the government and the RBI are closely monitoring the situation, the Finance Minister stated that the current price escalation has not yet reached alarming levels.
