Nirmala Sitharaman Says It Is Too Early to Gauge Impact of US Tariff Changes on India

Commerce Ministry Reviewing US Tariff Decision​

New Delhi, February 23: Union Finance Minister Nirmala Sitharaman said on Monday that it is too early to assess the impact of the recent tariff changes announced by the United States, noting that the commerce ministry is currently examining the developments.

Her remarks follow renewed trade tensions after the US Supreme Court ruled against sweeping import tariffs imposed earlier by the administration of Donald Trump.

Subsequently, President Trump announced a 10 per cent tariff on imports from all countries, including India, effective February 24 for a period of 150 days. A day later, he stated that the tariff would be raised to 15 per cent.

When asked about the likely implications of these changes for the Indian economy, Sitharaman described it as “a bit too soon” to offer a detailed assessment.

“The commerce ministry is examining the situation and a delegation will decide on the timing of further trade negotiations. It is a bit too early for me to comment,” she told reporters.

India Reaffirms Commitment to Global Trade Engagement​

The finance minister emphasized that India remains committed to expanding its global trade footprint through agreements with multiple countries and economic blocs.

“India has already signed trade pacts with countries such as Australia, New Zealand, the UAE, Qatar, Oman, as well as blocs like the EU and the UK,” Sitharaman said.

She reiterated that India intends to continue engaging with international markets to ensure that the domestic economy benefits from global trade opportunities.

Gold Prices Rise Amid Central Bank Buying​

Speaking after the customary post-Budget meeting with the Central Board of Directors of the Reserve Bank of India, Sitharaman also addressed concerns over rising gold prices.

She attributed the recent spike largely to increased purchases by central banks worldwide.

“Most countries today, particularly their central banks, are buying gold and silver and storing them,” the finance minister said.

She noted that gold has traditionally been a preferred investment option for Indian households, with demand typically increasing during the festive season.

Sitharaman assured that the government and the Reserve Bank of India are closely monitoring the situation, adding that the rise in gold prices has not reached alarming levels so far.