Chennai (Tamil Nadu) [India], July 31 : Economist Suriya Narayanan reacted to the 25 per cent tariffs imposed on India by the United States President Donald Trump, calling it a setback for the country, with the move expected to impact Indian trade and exporters.
While speaking to ANI, Economist Suriya Narayanan stated, "This is a setback to India because India was exporting pharmaceuticals, copper, metals and more with zero tariffs. Now India has to pay for products exported to the US. This will impact the Indian exporters... This will impact the Indian trade, and Indian exporters expect some concessions... The American trade team will visit India on 25th August to further talk on this..."
Several Indian trade bodies have also expressed disappointment over the US decision, viewing the move as a blow to India's export momentum. They, however, pointed to potential opportunities for export diversification and supply chain realignment.
While some trade and industry leaders cautioned that the decision could trigger short-term disruptions, others were confident that India's robust manufacturing capabilities, particularly in sectors like pharmaceuticals and medical equipment, would help the country withstand the impact and explore new trade partnerships.
Subhash Goyal, Chairman of the Tourism Expert Committee at the Chamber of Commerce, termed it "a sad day for Indian exports," cautioning that the tariffs would slow down outbound trade and affect the domestic manufacturing sector.
"It is a sad day for Indian exports because India is doing exports worth over USD 100 billion, and the surplus is over USD 40 billion," Goyal said, adding, "It will slow down some of our exports, and there will be a ripple effect on our manufacturing... But it will also adversely affect the American consumers. We are seeing that many American airports are devoid of tourists... India will also have to diversify its export markets, and it will have to relook at certain Asian and European markets."
Earlier in the day, US President Donald Trump announced that a 25 per cent tariff and an additional penalty would be imposed on Indian imports, starting August 1, citing high Indian tariffs and the country's trade relationship with Russia.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said in a post on Truth Social.
"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!", he added.