Sitharaman Refutes ‘Tariff King’ Label, Highlights India’s Lower Effective Import Duties.
Union Finance Minister Nirmala Sitharaman has dismissed former US President Donald Trump’s claim branding India as the “tariff king,” asserting that the country’s effective import duties are significantly lower than the notified maximum rates.
Speaking at the Trade Conclave 2025 organized by the Exim Bank in New Delhi, Sitharaman clarified that while India seeks parliamentary approval for upper limits on customs duties, the actual levies applied are often well below those ceilings. “The effective rate is at a far lower level than what is published in the gazette,” she said, addressing the long-standing criticism of India’s tariff structure.
As part of the Union Budget 2025–26, the government has taken further steps to simplify the customs framework, removing seven tariff slabs on industrial goods and bringing the total down to just eight, including a zero rate. This follows similar rationalizations in the previous fiscal year.
A senior government official, speaking on condition of anonymity, supported Sitharaman’s remarks and pointed out that India’s average customs duty now stands at 10.66%—comparable to other Asian economies. “The perception that India imposes excessively high tariffs is inaccurate. Most US goods enter India with duties in the 0–10% range,” the official said.
Trump has repeatedly criticized India’s trade policy, once citing the example of a 100% duty on Harley-Davidson motorcycles. However, India has since reduced import duties on bikes and other US interests, including pharmaceuticals and premium liquor. “Despite these reforms, the former US President seems to remain fixed in his view,” the official added.
Sitharaman’s remarks come at a time when India and the US are negotiating an early harvest agreement as part of a broader Bilateral Trade Agreement (BTA), aimed at easing tariff and non-tariff barriers on both sides.
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