Trump Vows to Introduce Reciprocal Tax Against India if Elected

As the US presidential election approaches, Republican nominee Donald Trump has promised to introduce a reciprocal tax against India if elected. In a speech in Detroit, Trump criticized India's high tariffs, saying the country imposes the highest tariffs and that American businesses have cited high tariffs as a challenge in the Indian market. Trump also recalled his meeting with Harley-Davidson representatives, who cited 150% tariffs as a key obstacle to doing business in India. Despite India's growth, Trump's comments reflect the US's concerns about trade ties and the impact of globalisation on domestic markets.

Key Takeaways:

• India's average tariffs have risen to 18.1% in 2022 from 13% in 2014.
• The US is India's largest trade partner, with total bilateral trade nearing $120 billion in FY24.
• India runs a goods trade deficit with nine of its top ten trading partners, but exports more to the US than it imports.
• India has introduced production-linked incentive schemes for 14 priority sectors and uses tariffs to boost local production.
• Trump's comments on tariffs come amid a global trend of protective measures against Chinese imports.
• The US has raised tariff barriers targeting imports from China and imposed fresh tariffs on new sectors such as electric vehicles (EVs).
• European steelmakers have appealed to trade officials to address a surge in Chinese steel exports.

Statistics:

• India's average tariffs have increased to 18.1% in 2022 from 13% in 2014.
• Total bilateral trade between India and the US is nearing $120 billion in FY24.
• 9 out of India's top 10 trading partners run a goods trade deficit with the country.
• India exports more to the US than it imports.
• 14 priority sectors have been identified for production-linked incentive schemes in India.
• Twitter: Indian steelmakers have asked the government to impose anti-dumping duties on Chinese steel, citing eroded profits in the industry.

Sources:

• PTI report, cited in The Indian Express, New Delhi, India
• The Indian Express (P) Ltd Copyright 2024 IE Online Media Services Pvt. Ltd., distributed by Contify.com