New Delhi, March 28: Finance Minister Nirmala Sitharaman stated on Thursday that the ongoing rationalization of customs duties and the withdrawal of the 6% equalization levy, initiated in 2023, is unrelated to global events and will continue. She emphasized that these measures support India's goal of becoming a manufacturing hub and strengthening battery and advanced chemistry capacities.

During a discussion on the Finance Bill 2025 in Rajya Sabha, Sitharaman clarified, "We have consistently reduced duties in successive budgets to advance India's manufacturing ambitions and build battery and advanced chemistry capacities. This process has been in place since 2023 and is not a reaction to global tariff changes, including those announced by President Trump. It aligns with Atmanirbhar Bharat and Viksit Bharat goals while simplifying customs duties and compliance."

India has reduced customs duties on various items and removed the 6% equalization levy. Meanwhile, US President Donald Trump has announced a 25% tariff on all imported vehicles starting April 2, aiming to boost domestic production. The move could impact nearly half of all vehicles sold in the US, including American brands manufactured overseas.

Industry experts warn that the tariffs may lead to increased vehicle prices, reduced consumer choices, and job market disruptions. Countries like Japan, South Korea, and European nations, which export significant numbers of vehicles to the US, could see heightened trade tensions. Economists predict that car prices may rise by thousands of dollars, adding to inflationary pressures. Trump defended the policy, stating it would benefit manufacturers with plants in the US. He previously criticized India's high auto import tariffs, calling for a reciprocal tax, asserting that the US has been taken advantage of for decades and pledging to put an end to it.

Disclaimer: This image is taken from ANI.