‘Too many countries leaving China and not coming to India…’: Eric Garcetti on tariffs

US Ambassador to India Eric Garcetti said that India should reduce its tariffs and that many companies are not coming to India because of high tariffs. In an exclusive interview with India Today, Garcetti said that President-elect Donald Trump is right in some ways. He was referring to Trump’s criticism of India’s high tariffs.

In an interview, when asked about Trump’s criticism of India-US trade relations, despite praising Prime Minister Narendra Modi, Garcetti said: “President Trump is right in some ways. We need to make sure we have bigger, bolder conversations. Under this administration, we have resolved one hundred percent of our trade disputes, so we have kind of set the table. Now, if we are true to our word that we want to replace our dependence on China, creating scale for the world, not just for our companies, from healthcare to pharmaceuticals, everyday electronics and critical emerging technologies; India is the place to be.”

Garcetti said that India should review its tariffs anyway. “Many countries are pulling out of China and not coming to India because tariffs have yet to come down further. Transport and infrastructure can continue to be built, as we see it, on trademark protection, taxes, training and labor talent.”

It comes as Trump reiterated India’s high tariffs. In a speech at the Detroit Economic Club last year before the November election, Trump said: “Perhaps the most important element of my plan to make America extraordinarily rich again is reciprocity. That’s a word that’s very important in my plan, because we don’t usually charge tariffs. It was very good, with vans and small trucks. Brazil is a big charger. The biggest charger is India.” After that, he praised PM Modi for being a “great leader, a great man”.

Meanwhile, Commerce and Industry Minister Piyush Goyal had responded to concerns about a possible increase in imports from the US, saying the government was not worried about the tariffs. He stated that if it is a tariff for China then it is only helping India and if it is for everyone then everyone is on the same boat.

“We will continue to do well. But I personally believe that India is seen as a reliable partner by the democratic world,” Goyal said at Business Today’s Most Powerful Women 2024 event in Mumbai, agreeing that Trump might speak up once or twice about India’s high tariffs, but also made it clear that he likes India and wants to expand business with India.