India must impose higher tariffs on US imports: Arvind Kejriwal

Aam Aadmi Party's national convener Arvind Kejriwal on Thursday demanded that India impose higher tariffs on US imports and asserted that the whole country will support this decision.

Addressing a press conference, Kejriwal alleged that the BJP-led Central government has decided to waive off 11 per cent duty on cotton imported from the US, which could impact the business of local farmers in Delhi.

There was no immediate reaction from the Central government. Stating that Prime Minister Narendra Modi's decision could prove detrimental to India's farmers, the AAP chief demanded that the government impose higher tariffs on US imports.

"Other countries did not bow down, they imposed higher tariffs. We should also impose higher tariffs. If the US is imposing 50 per cent tariffs, we should double it to 100 per cent. The whole country will support this decision. No country can afford to offend India. We are a nation of 140 crore people," he said.

The government on Thursday extended duty-free import of cotton by three more months till December 31 to support textile exporters facing steep 50 per cent tariffs in the US.

Earlier, on August 18, the Ministry of Finance had allowed duty exemption on cotton imports from August 19 till September 30.

"India used to impose 11 per cent duty on cotton imported from America. This meant that the American cotton was costly than homegrown cotton. But the Modi government has decided to waive off this duty from August 19 till September 30. This means that textile industries will get cheaper cotton. When our cotton will come in the market for sale in October, there would be few takers," Kejriwal claimed.

The farmers of Telangana, Punjab, Vidarbha and Gujarat will be highly impacted by this decision, he said.

"We all know that US President Donald Trump has imposed 50 per cent tariffs. We should have increased the 11 per cent duty to 50 per cent and not waived it off completely," he added.

Kejriwal said his party wants the Centre to reimpose the 11 per cent duty on American cotton.

"On September 7, the AAP will hold a huge public meeting in Chotila, Gujarat over the issue. I urge all the political parties and farmers' organisations to raise this issue. The farmers in Chotila are going to be heavily impacted by this decision of the Central government," the AAP chief said.