India-US engaged in trade war?

Last Updated on December 20, 2024 8:39 am

The newly elected US President Donald Trump seems desperate to boost the US economy. He is planning to do so even before he comes to power.

Trump is not willing to give up even a hair for the sake of his own country. Therefore, this incoming president has put ‘friendly country’ India on the ‘red list’ in the trade war. He has announced retaliatory tariffs against the country’s high tariffs. He wants to reduce the trade deficit.

In this, analysts are seeing the fear of a US trade war with India after China. News AFP, Reuters.

Indian Prime Minister Narendra Modi is one of the few world leaders with whom Trump is believed to have a ‘good relationship’. However, the US President, who is going to take office in January, is not leaving any impression of verbal friendship regarding trade. After strongly criticizing India’s high tariffs on US goods, he has now announced high tariffs on Indian goods. India has imposed high tariffs on several US imports.

In response to a question from reporters about a possible trade deal with China, Trump said that India will be retaliated against with high tariffs. Brazil is also on the list.

The Trump Tower boss said that the US will impose tariffs on imports of goods equivalent to those countries. He told reporters at his residence on Tuesday that if any country imposes additional tariffs on us, the US will also impose high tariffs on products from that country. They (India) impose high tariffs on us in almost all cases. But so far we have not imposed any tariffs on them.

Trump also said that the word ‘reciprocal’ is important because if someone imposes tariffs on us, we will do the same. India We don’t have to talk about ourselves, if India imposes 100 percent tariffs on us, will we impose zero tariffs on them? You know, they send a bicycle and we send a bicycle. They impose 100 or 200 percent tariffs on us. India imposes a lot of tariffs. Brazil imposes a lot of tariffs. If they want to impose tariffs on us, that’s fine, but we will impose the same amount of tariffs on them.’ Trump’s Commerce Secretary-designate Howard Latnick had made similar comments earlier.

He said, ‘The new administration’s policy of mutual benefit is going to be very important. You should expect us to treat you the way you treat us.’

While the US’s strategic geopolitical relationship with India improved during Trump’s first term, trade relations were not pleasant. In 2019, the US increased tariffs on Indian steel and aluminum imports. In retaliation, India imposed tariffs on some US products. As a result, the country lost its preferential market access, or GSP, in the US. Analysts are concerned that similar trade tensions will arise in Trump’s second term.

Recent announcements indicate that. India’s IT, pharmaceutical and textile industries will be the most affected. India’s main export market is the United States, with exports of $77.52 billion in the last fiscal year. On the other hand, India imported $42.2 billion. That is, the United States has a trade deficit with India. Donald Trump has been threatening to impose high tariffs on various countries since the presidential election.

Having said that he would impose high tariffs on China, Mexico and Canada, he has now added India to that list. Republican candidate Donald Trump won the US presidential election on November 5. However, he has not yet officially taken office. Trump will be sworn in as US President on January 20.