26.7 C
New Delhi
Thursday 24 October 2019
India Indian tariffs on American goods irk Trump again

Indian tariffs on American goods irk Trump again

India had raised tariffs on 28 items exported from the US, in retaliation to America's withdrawal of preferential access for Indian products

-

- Advertisment -

Washington, DC: US President Donald Trump Tuesday launched a fresh attack on India for imposing tariffs on American products and said it was “no longer acceptable”, days after he held talks with Prime Minister Narendra Modi and agreed to sort out the trade-related issues.

This is a clash between two economic powers, where Trump champions an ‘America First’ policy while Prime Minister Narendra Modi stands for ‘India First’, and the idea of both the leaders about keeping the interests of their respective countries above all translates to protectionism. While India raised tariffs on 28 items, including almond, pulses and walnut, exported from the US, it was in retaliation to America’s withdrawal of preferential access for Indian products.

President Trump had terminated India’s designation as a beneficiary developing nation under the key GSP trade programme from 5 June after determining that New Delhi has not assured the US that it will provide “equitable and reasonable access” to its markets. The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

“India has long had a field day putting Tariffs on American products. No longer acceptable!” Trump tweeted on Tuesday, not mentioning why India raised the tariffs.

Trump’s terse comment within a fortnight after his meeting with Prime Minister Modi on the sidelines of the G20 Summit in Osaka on 28 June where the two leaders aired their concerns over the bilateral trade disputes and agreed for a meeting of their commerce ministers to sort out the issues.

Later this week, US Commerce Secretary Wilbur Ross and Energy Secretary Rick Perry are scheduled to address a major India centric conference in Washington DC.

Though trade is an important part of the booming bilateral relationship, a row over market access and tariffs has escalated in recent months, leading to fears of a protracted dispute.

Before his meeting with Modi, Trump had tweeted, “I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!”

Trump has criticised India’s high import tariff on the iconic Harley Davidson motorcycles as “unacceptable”, too.

But last February, India slashed the customs duty on imported motorcycles like Harley-Davidson to 50% after Trump called it “unfair” and threatened to increase the tariff on import of Indian bikes to the US. The government on 21 June last year decided to impose these duties in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. America, in March last year, imposed 25% tariff on steel and a 10% import duty on aluminium products.

The Trump administration wants India to lower the trade barriers and embrace “fair and reciprocal” trade.

Many US companies like Google, Mastercard, Visa and Amazon have raised concerns over the issue of data localisation and its impact on their operational cost. In April last year, the Reserve Bank of India had issued a directive on ‘Storage of Payment System Data’. It had advised all system providers to ensure that within a period of six months, the entire data relating to payment systems operated by them is stored in a system only in India, for effective monitoring.

India has also dragged the US to the World Trade Organisation’s dispute settlement mechanism over the imposition of import duties on steel and aluminium.

India’s exports to the US in 2017-18 stood at $ 47.9 billion, while imports were at $ 26.7 billion. The trade balance is in favour of India.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

2 COMMENTS

Leave a Reply

Opinion

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions
- Advertisement -

Elsewhere

Unauthorised colonies in Delhi to be regularised: Modi Cabinet

The Modi government has finally come to terms with the ghastly sight of unauthorised colonies in Delhi that the Kejriwal dispensation had embraced long ago for votes

Ganguly on Dhoni: Champions don’t finish quickly

I have always said when I was left out and the entire world said 'I will never make it'. I came back and played for four years. Champions don't finish very quickly: Sourav Ganguly

Rabi crop growers to get higher MSP, Cabinet decides

The Cabinet has decided to grant a higher MSP for rabi crops recommended by the CACP; it will cost the exchequer an additional Rs 3,000 crore

Pension to arrive late by 2 years, but workers will not complain

Pushing the age of pension by two years, the government will save Rs 30,000 crore; the amount it owes to EPFO has been accumulating since 2014-15

Jharkhand sees pre-election opposition exodus to BJP

An exhaustive list of deserters among politicians of Jharkhand where switching parties is commonplace both pre-poll and post-election

You might also likeRELATED
Recommended to you

%d bloggers like this: