Thu Mar 27 18:24:22 UTC 2025: ## Rajya Sabha Debates Looming US Tariff War, India’s Response

**New Delhi, March 28, 2025** – Concerns over a potential global tariff war sparked by US President Donald Trump’s announced reciprocal tariffs dominated Thursday’s Rajya Sabha proceedings. Opposition members pressed the government for clarity on India’s strategy to counter the threat, which includes a 25% tariff on automobile imports expected to generate $100 billion in revenue for the US.

Congress MP and former Finance Minister P. Chidambaram led the charge, urging the government to publicly address the impending tariffs and consult with opposition parties. He warned that a tariff war could severely damage the global economy. Other opposition members from Trinamool Congress, CPI(M), and Congress echoed these concerns.

Union Finance Minister Nirmala Sitharaman responded by highlighting recent reductions in basic customs duties and other tariffs implemented since 2023 as part of an ongoing effort to rationalize the tariff structure and boost domestic manufacturing under the “Atmanirbhar Bharat” initiative. She emphasized that these reductions were not a direct response to Trump’s announcements, aiming to support small and medium industries and promote exports. She detailed various duty exemptions on goods crucial for electric vehicle and mobile phone battery production.

Chidambaram, while acknowledging the duty reductions, questioned whether they were genuine policy changes or a reaction to Trump’s actions. He criticized protectionism, arguing it hinders free trade. BJP MP R.P.N. Singh stated that a meaningful discussion on the reciprocal tariffs would only be possible after their April 2nd implementation.

The Appropriation and Finance Bills were subsequently passed by the Rajya Sabha. The debate highlighted the tension between India’s economic policies and the potential impact of the escalating trade conflict with the US, with ongoing discussions between the two countries ongoing. The impact of the tariffs on India’s automobile sector is expected to be minimal, according to the GTRI. Japan and Canada have also expressed strong concerns regarding the potential economic fallout.

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