New Delhi: In response to U.S. President-elect Donald Trump’s recent remarks labelling India as the ‘biggest’ imposer of import tariffs, Finance Minister Nirmala Sitharaman indicated on Tuesday that she may reconsider increased tariffs on goods that do not impact the domestic industry, media reports said.

Speaking at an event, she noted that she would consider lifting tariffs on products as long as doing so did not unintentionally harm local production, adding that a balance was necessary to support both domestic producers and those reliant on imports, Reported Republic Media Network.

Sitharaman emphasized her responsibility to protect existing domestic industries, while at the same time accommodating the needs of sectors dependent on imported goods.

Trump has been a vocal critic of India’s tariff policies, often describing India as a high-tariff nation.

In 2020, he referred to India as the ‘tariff king’ and recently claimed that India is the ‘biggest charger’ of tariffs on foreign goods and an ‘abuser’ of import tariffs, adding that the U.S. would impose reciprocal tariffs if he were re-elected.

Sitharaman also clarified that India’s increase in import duties was not aimed at controlling imports and argued that each tariff could be justified individually.

The trade relationship between India and the U.S. remains significant, with the U.S. being India’s largest trading partner and biggest export market, as well as its fourth-largest source of imports.

During the 2023-24 fiscal year, bilateral merchandise trade between the two countries reached nearly $120 billion, with India enjoying a trade surplus of $35.3 billion. Overall trade in goods and services was valued at $190.1 billion in 2023.

In terms of investment, the U.S. ranked as the third-largest source of foreign direct investment (FDI) in India during FY24, contributing $4.99 billion and accounting for nearly 9% of total FDI equity inflows.