‘Too Soon to Assess’: Nirmala Sitharaman on US Tariff Changes as India Reviews Impact

Finance Minister Nirmala Sitharaman on Monday said it is “too soon” to assess how the latest tariff changes in the United States will impact the Indian economy, as the government continues to evaluate the evolving global trade landscape.

Speaking to reporters in New Delhi after the RBI’s 621st Central Board Meeting

Speaking to reporters in New Delhi after the RBI’s 621st Central Board Meeting, alongside RBI Governor Sanjay Malhotra, Sitharaman said the Ministry of Commerce and Industry is closely examining the implications of the revised US tariffs on bilateral trade, investment flows and key export sectors.

“On the Indian economy, it is a bit too soon for me to comment,” she said. “On trade, the commerce ministry is reviewing the situation and the delegation will decide when to travel to the US for further negotiations.”

What’s Behind the US Tariff Shift?

The developments follow a February 20 ruling by the Supreme Court of the United States, which struck down ‘reciprocal’ tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA).

Soon after the verdict, Trump signed an executive order imposing a fresh 10% global tariff on imports from all countries under Section 122 of the Trade Act of 1974, effective February 24, 2026. A day later, he raised the proposed tariff rate to 15%, sharply criticising the court’s ruling as “anti-American.”

The move has added fresh uncertainty to global trade, prompting countries like India to reassess potential economic ripple effects.

Gold and Silver: No Alarm Bells Yet

Addressing the recent surge in gold prices, Sitharaman said the rally is largely driven by aggressive buying by central banks worldwide.

She clarified that India’s gold and silver imports are not at alarming levels and that the Reserve Bank of India (RBI) is closely monitoring trends to ensure stability.

Warning on Insurance Mis-Selling

On concerns over mis-selling of insurance products, the finance minister stressed that banks must focus on their core business operations rather than aggressively pushing financial products.

Call for Higher Investment

On economic growth, Sitharaman urged India Inc to step up investments and actively contribute to the country’s growth momentum.

“Everybody should participate in India’s growth story,” she said, signaling that stronger private sector participation will be crucial amid global trade uncertainties.

As the US recalibrates its trade policies, India appears to be taking a measured, watchful approach — balancing caution with confidence in its economic fundamentals.