Amitabh Kant calls Trump tariffs a ‘once-in-a-generation' chance, India's Agneepath moment to scale the tariff Deewaar

Time of India

4 days ago

The United States has increased tariffs on Indian exports. Donald Trump cited India's trade practices and energy purchases from Russia as reasons. Amitabh Kant sees this as an opportunity for India to implement structural reforms. The tariffs, now at 50% on many goods, could affect Indian competitiveness in the US market.
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Trump doubles tariffs on Indian goods to 50%
Initial and additional tariffs take effect in August
Senate bill proposes further penalties
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Key export sectors to be affected
The recent escalation in US tariffs on Indian exports has been described by Amitabh Kant , former G20 Sherpa and ex-CEO of NITI Aayog, as a significant opportunity for India to pursue structural economic reforms . Calling the development a 'once in a generation opportunity,' Mr Kant urged policymakers to fully utilise the moment for long-term transformation. 'Trump has provided us a once in a generation opportunity to take the next big leap on reforms. Crisis must be fully utilised,' he posted on X (formerly Twitter).US President Donald Trump has announced a steep increase in tariffs on Indian exports, raising them to 50% from the previously declared 25%. The move, which Mr Trump framed as a response to India's continued energy trade with Russia, has raised concerns over its impact on trade flows and several Indian industries.The 25% tariff initially announced on July 30 will take effect on August 7 at 9:30 am IST. An additional 25% levy will be implemented 21 days later, effectively doubling the tariff burden. On Truth Social, Mr Trump referred to India as a "friend" but criticised its trade policies and ongoing military and energy cooperation 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,' Mr Trump stated. 'They have the most strenuous and obnoxious non-monetary Trade Barriers of any Country… and are Russia's largest buyer of ENERGY, along with China.'In addition to the executive action, a bill currently under consideration in the US Senate proposes a 500% tariff on imports from countries that continue buying oil from Russia and do not align with the US position on the Ukraine conflict. While the bill has not yet passed into law, it reflects growing bipartisan pressure to economically penalise nations maintaining strong trade ties with Moscow.The revised tariffs are expected to impact a broad range of Indian exports to the United States. Sectors facing the 50% duty include shrimps, organic chemicals, carpets, apparel, textiles, gems and jewellery, steel, aluminium, copper, machinery, and furniture.Vehicles will face a 26% tariff, and petroleum products will be taxed at 6.9%. The increased tariffs are likely to raise costs for Indian exporters and reduce the competitiveness of their goods in the US market.