With Trump’s Protectionism in Full Swing... India Takes Preliminary Step to Lower Tariffs
As the United States imposes tariffs on Canada, Mexico, China, and others, marking the full-scale rise of protectionism, India has taken preemptive measures by lowering tariffs.
According to foreign media including the Hindustan Times on the 3rd, the Indian Ministry of Finance announced the budget for the 2025-2026 fiscal year on the 31st of last month, stating that the average tariff rate will be reduced from the current 13% to 11%.
In particular, the import tariff on large motorcycles with engines over 1600cc from the American motorcycle manufacturer Harley-Davidson was lowered from 50% to 30%, and tariffs on textiles and auto parts were also reduced.
The reason India has lowered tariffs is interpreted as a preemptive move to avoid retaliatory tariffs from the United States.
The United States is India's largest trading partner, with trade volume between the two countries exceeding $118 billion (approximately 173 trillion won) in the 2023-2024 fiscal year. India recorded a trade surplus of $32 billion (approximately 47 trillion won).
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In response, former U.S. President Donald Trump referred to India as a "very big villain in trade" during his presidential campaign and vowed to correct the imbalance through tariffs.
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