Mumbai (Maharashtra) [India], July 30 : With the US President Donald Trump announcing 25 per cent tariff along with penalty on Indian goods, senior corporate lawyer HP Ranina said on Wednesday that the decision will affect the exports currently in the pipeline, but the tariffs are less than those on Chinese and Bangladeshi goods.
He said Indian exports such as leather products are very cheap, the move will not cause "a big problem".
Ranina told ANI in an interview that Trump has talked of a penalty for continued purchase of oil from Russia, but India has many other sources of procuring crude oil.
"The US is a government, and they can impose a tariff from 1st August; legally, you can't stop it. It will definitely affect exports, which are currently in the pipeline. Because many of the export contracts have been put on hold in view of the tariffs, but this 25 per cent tariff, you must understand, is still less than the tariff imposed on Chinese and Bangladeshi goods. So India is not worse off. I think 25 per cent is not a big deal, which will affect the Indian goods to a very big extent," he said.
Ranina expressed confidence that the proposed penalty for the purchase of Russian oil will get watered down.
"Now he (Trump) is talking about penalties, but we don't know what the penalty is, as he has not announced it. If a penalty is levied, that is, if you go on buying Russian oil, but Russian oil also is something which we are not totally dependent upon. India is also importing a lot of oil from the UAE, Saudi Arabia, Azerbaijan, and other countries. So we have many other sources. In the course of time, we can even import American oil because they make a lot of crude oil. They're the largest producers of crude oil in the world, so that can also happen. So I don't think even this penalty issue will be a very serious issue. I think it will get watered down," he said.
"I think in the next few days things will be sorted out and the Indian exports will increase. The only issue is about certain things, like say our phones, for example, the iPhone. Apple is manufacturing iPhones in India, and we are exporting a lot of iPhones to America, so that may have an impact. So the Indian goods manufactured in India will become a little more expensive...," he added.
US President Donald Trump, in a social media post on Wednesday, on his Truth Social Account announced 25 per cent tariffs on India starting August 1.
Trump also said India will face additional penalties for purchasing oil from 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. 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!", Trump said in the post.
Trump's announcement came two days ahead of the impending US tariff deadline of August 1 amid hopes of an interim India-US trade that would have otherwise helped avoid elevated tariffs.
Over the past few months, India and the US have been negotiating for an interim trade deal, but there were some reservations from the Indian side on the US demand for opening up the agricultural and dairy sectors for the US. Agriculture and dairy are critical for India as these two sectors provide livelihood opportunities to a large section of its people.
India reportedly faces US demands, including opening up agriculture and dairy, accepting genetically modified (GM) feed, and adopting US rules on digital trade and product standards.
India on Wednesday said that it has taken note of a statement by the US President on bilateral trade and is studying its implications.
A statement by the Commerce and Industry Ministry said that India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months.
"We remain committed to that objective," the statement said.
It said the Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.
"The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK," the statement said.