FM Sitharaman Rejects ‘Tariff King’ Label, Says India’s Effective Import Duties Much Lower Than Notified Rates.
Union Finance Minister Nirmala Sitharaman has firmly rejected former US President Donald Trump’s claim labelling India as the “tariff king,” asserting that India’s effective import duties are significantly lower than the maximum rates published in official notifications.
Speaking at the Trade Conclave 2025 hosted by Exim Bank in New Delhi, Sitharaman clarified that the higher customs duty rates cited in the gazette are merely ceilings approved by Parliament, not the rates actually applied in most cases. “The effective rate is at a far lower level,” she stressed, adding that the perception of India levying steep tariffs is misleading.
As part of the FY26 Union Budget, the government removed seven more tariff slabs for industrial goods, streamlining the structure down to just eight, including the zero rate. This move continues a trend of tariff simplification, following the removal of seven slabs in the previous budget.
“Customs duty reforms are ongoing,” Sitharaman noted. “We are reducing complexity to boost domestic value addition and ease of doing business.”
An unnamed government official supported her remarks, stating that India’s average customs duty now stands at 10.66%, aligning closely with other Asian economies. “Most American products already fall within the 0–10% effective duty band,” the official said, pointing out that India has already cut duties on high-profile US exports like motorcycles, pharmaceuticals, and Bourbon whiskey.
The official also remarked that Trump’s “tariff king” narrative is outdated. “He made similar comments during his earlier term, particularly about Harley-Davidson motorcycles. Since then, India has slashed those duties significantly.”
Sitharaman’s clarification comes as India and the US are in talks for an early harvest deal under a broader Bilateral Trade Agreement (BTA), aiming to reduce both tariff and non-tariff barriers to deepen trade ties.
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