Trump Imposes 26% Tariff on India Amidst Trade Reform Measures
US President Donald Trump has enacted a 26% “discounted reciprocal tariff” on Indian imports aimed at addressing unfair trade practices. This is part of a broader strategy that includes tariffs against 60 nations. While intended to boost domestic manufacturing, these tariffs may provoke trade tensions and have already drawn criticism from industry leaders regarding economic impacts.
United States President Donald Trump has announced a 26% “discounted reciprocal tariff” on imports from India as part of his administration’s strategy to address trade inequities with 60 countries accused of imposing unfair trade barriers against American goods. This announcement forms part of his “Liberation Day” measures aimed at balancing trade and enhancing domestic manufacturing. A baseline tariff of 10% on all US imports was also implemented, with increased tariffs on affected nations like India, China, and EU member states.
During his speech at the White House, President Trump remarked that the new tariffs reflect half of the tariffs imposed by the targeted countries, yet the specific calculations remained unclear. He criticized the high tariffs that India imposes, including a 70% tariff on motorcycles and automobiles, asserting that these burdens make trade relations inequitable. He acknowledged Prime Minister Narendra Modi’s friendship but stated that India had not treated the US fairly.
The Indian government is anticipated to respond to these tariffs following Modi’s attendance at the Bimstec Summit in Thailand. In their previous meetings, Modi and Trump aimed to increase bilateral trade to $500 billion by 2030 and initiate negotiations for a multi-sector bilateral trade agreement by 2025, which seeks to enhance trade growth and reduce barriers.
As of 2024, bilateral trade between India and the US stood at approximately $129.2 billion, with US exports totaling $41.8 billion and Indian exports amounting to $87.4 billion. Trump has also outlined reciprocal tariffs for various trading partners, such as 34% for China and 20% for the EU. Furthermore, he indicated potential exemptions from tariffs for companies that manufacture within the US and urged other nations to remove their trade barriers.
Trump proposed that his tariffs could lead to substantial investments in America, asserting that these policies would foster economic growth. However, US National Association of Manufacturers President Jay Timmons expressed concerns that new tariffs could jeopardize investments and jobs. Analysts have warned that these trade measures might instigate trade wars, adversely affecting the global economy.
In summary, President Trump has imposed significant tariffs on India and other countries, claiming to rectify trade disparities and promote American manufacturing. However, the ambiguity in tariff calculations and potential consequences for international trade raise concerns. The ongoing discourse around bilateral trade agreements and international relations will be vital in navigating these newly established trade barriers, as responses from affected countries, particularly India, are expected to unfold in the coming days.
Original Source: www.hindustantimes.com
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