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India-US Trade News: The speech given by Donald Trump after taking oath as President has shocked many countries. Their policy of America First can increase the problems of countries like India and the dispute between India and America on the trade front can increase. In such a situation, trade experts say that if America’s new President Donald Trump decides to impose high duty on Indian products, then India should also take similar steps in response.
Trade experts believe that India has already imposed retaliatory customs duties on many American products like apples in response to illegal duties imposed by the US on some steel and aluminum products. Trump had said in December that India imposes ‘a lot’ of duties. Along with this, he also reiterated his intention to impose reciprocal duties in response to the duties imposed by India on the import of some American products.
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), an economic research institute, said, ‘India should respond strongly and with equal measures. Earlier in 2018, when America had imposed tax on Indian steel and aluminium, India had also retaliated by increasing duty on 29 American products. Ajay Srivastava said, if the new US administration decides to pursue ‘America First’ agenda, Indian exporters may face higher customs duties for vehicles, textiles and pharmaceutical products. Apart from this, tightening of H-1B visa rules may affect the growth of Indian IT firms.
International trade expert Abhijit Das said, ‘If America imposes additional duties, the market for Indian goods will be closed. In such a situation, India should also retaliate with similar measures. This will strengthen India’s position in future talks on removing illegal fees.
Trade experts also said Trump’s accusation of ‘misusing’ import duties on India is unfair as many countries, including the US, protect their domestic industries by imposing high customs duties on certain products. International trade expert Biswajit Dhar said Trump will increase tariffs in various sectors as he seeks to fulfill his slogan of ‘Make America Great Again’ (MAGA). Dhar said, ‘Trump has already raised the issue of trade surplus with India. India has always supported consultation and has never acted unilaterally. But if things do not work then we should think about taking action accordingly.
Export organizations believe that Trump will not follow through on his threat to increase tariffs, as many American companies have shown interest in investing in India and the imposition of tariffs will affect them too. Ashwini Kumar, president of FIEO, a federation of exporter organizations, said, ‘I think India-US trade relations will become stronger. If America imposes higher duties on Chinese products, India will have the opportunity to increase its exports to America. Putting aside the apprehensions, SP Sharma, Deputy General Secretary of the PHD Chamber of Commerce and Industry, said that like Trump’s previous tenure, India-America economic and trade relations are expected to strengthen this time too.
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