'Worst-case scenario would be...', says government on Trump's '25 per cent tariff plus penalty' on India

The recent 25 per cent tariff imposed by US President Donald Trump is unlikely to harm the nation's economy, India Today cited a senior government official familiar with the matter. The official, as per the report, said that India's key sectors, including agriculture and dairy, will remain protected and that the impact on exports and imports will be minimal. 

The official further added that the government is keeping an eye on the developments, but there's nothing to be alarmed of. “There may be a marginal impact of the 25% tariff, but this impact is not at all alarming on Indian markets,” the official said, adding that the worst-case scenario may lead to a GDP loss of less than 0.2 per cent, reported India Today. 

The government official further asserted that farmers' interests would not be compromised. “The farmer’s interest is paramount. There is no question of allowing the import of genetically modified (GM) crops,” the source said. “India will not agree to any terms that hurt our agriculture or dairy sectors", said the official. 

'25 per cent tariff plus a penalty'

US President Donald Trump, on Wednesday, slapped a 25 per cent tariff on Indian goods entering the States. In addition, he announced a penalty for India for trading 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".

The US President cited India’s trade ties with Russia as a reason to impose a penalty on New Delhi. “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!"