How will Trump tariffs impact India? Sitharaman says GST 2.0 will offset much of the effect

Union Finance Minister Nirmala Sitharaman has said that the GST 2.0 reforms are set to offset the effects of tariffs imposed by US President Donald Trump.

In an exclusive interview with Network18, Sitharaman said that the government under Prime Minister Narendra Modi is taking every step to ensure that those impacted by the 50 per cent tariffs are taken care of.

“We will come out with something to handhold those who are hit by 50% US tariffs. We can’t leave our exporters high and dry,” the finance minister said.

#Exclusive | We will come out with something to handhold those who are hit by 50% US tariffs. We can’t leave our exporters high and dry. Whether its Russian oil or anything else, its our decision where we buy from. I'm outraged by the kind of disrespect shown to Indians and the… pic.twitter.com/BXnIGitORw

— News18 (@CNNnews18) September 5, 2025

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The Goods and Services Tax (GST) Council has announced next-generation tax reforms as promised by Prime Minister Narendra Modi from the ramparts of Red Fort on Independence Day. The Council has approved the centre’s proposal to streamline the indirect tax structure into a dual slab of 5 per cent and 18 per cent.

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Will India continue to buy Russian oil? Sitharaman says ‘yes, our decision where we buy oil from’

GST 2.0 was in the works for about 8 months: Sitharaman says PM Modi wanted it simplified

The GST reforms have been introduced after Trump’s punitive tariffs went into effect last month. The calculation behind the tariff math is 25 per cent taxes plus a 25 per cent penalty that has been imposed in response to “threats to the United States by the government of the Russian Federation”, and penalises India for buying Russian oil directly or indirectly.

Sitharaman also slammed the Opposition for justifying incendiary remarks made by US officials over India’s Russian oil purchase. She said, “It is the cynics and naysayers within India who worry me. India requires its citizens to be respected.”

#Exclusive | It is the cynics and naysayers within India who worry me. India requires its citizens to be respected. Inflation has come down drastically.: FM @nsitharaman#GSTReforms | @18RahulJoshi pic.twitter.com/1jWJPrx9j5

— News18 (@CNNnews18) September 5, 2025