GTRI Slams Trump's Tariff Accusation, Calls for Free Trade Agreement with India

Strategic Insights -

The Global Trade Research Initiative (GTRI) has come down heavily on former US President Donald Trump's claim that India is an "abuser" of import tariffs. According to a report by the think tank, the US imposes high duties on various products, including dairy products, fruits and vegetables, cereals, and beverages, making its own tariff policy quite complex.

Key Takeaways:

  • The US imposes high tariffs on various products, including dairy products (188%), fruits and vegetables (132%), cereals and food preparations (193%), oilseeds, fats and oils (164%), beverages and tobacco (150%), and minerals and metals (187%).
  • The US has one of the highest tariffs in the world, with a maximum tariff of 457% imposed by Japan, 887% by Korea, and 350% by the US itself, compared to India's 150%.
  • GTRI suggests that the US should consider negotiating a free trade agreement with India if it wants zero tariff access.
  • India's average tariff rate of 17% is higher than the US' 3.3%, but similar to other major economies like South Korea (13.4%) and China (7.5%).
  • Tariff calculations can be complex, and Trump's argument singles out products with the highest tariffs while neglecting the average and trade-weighted tariffs that better represent India's trade policy.
  • The GTRI report highlights the need for a more nuanced understanding of tariff policies and trade agreements between the US and India.

Statistics:

  • Maximum tariff imposed by: Japan (457%), Korea (887%), US (350%), and India (150%).
  • Average tariff rate in India: 17%
  • US tariff on dairy products: 188%
  • US tariff on fruits and vegetables: 132%
  • US tariff on cereals and food preparations: 193%
  • US tariff on oilseeds, fats and oils: 164%
  • US tariff on beverages and tobacco: 150%
  • US tariff on minerals and metals: 187%

Sources:

  • GTRI report
  • Ajay Srivastava, founder, Global Trade Research Initiative