Impose higher tariffs on American goods: Arvind Kejriwal, Leader, AAP

Arvind Kejriwal, Leader, Aam Aadmi Party (AAP). Kejriwal has demanded India should also impose a higher tariff on American goods in retaliation for recent US trade policies. Originally set to expire on September 30, duty-free import of cotton has been extended until December 31. This move is aimed at helping India’s textile exporters, who are facing a significant challenge after the US imposed a 50 per cent tariff on certain Indian exports. However, Kejriwal argues, this move will harm domestic cotton farmers.

India used to impose an 11 per cent duty on cotton from America. This meant that American cotton was more expensive than homegrown cotton, says Kejriwal. By waiving the duty, the government has made imported cotton cheaper, which will leave Indian farmers with few buyers for their crop when their harvest hits the market in October, he argues.  He specifically names farmers in Telangana, Punjab, Vidarbha, and Gujarat as those who would be most affected.

Kejriwal has urged the government to adopt a more aggressive stance, similar to other nations that have retaliated against US tariffs. If the US is imposing 50 per cent tariffs, India should double it to 100 per cent, he states.