US President Donald Trump and Prime Minister Narendra Modi. (File photo)
India is now preparing for a reversal after the US impositions heavy import duty on Indian steel, aluminum and its related products. According to a report of money control, the government is considering putting tariffs on selected American products in the same proportion, as much as Indian exporters have suffered. If this step is taken, this will be India’s first formal answer on President Donald Trump’s tariff policy.
How the dispute started
The dispute began in February, when the Trump administration imposed 25% tariff on Indian steel and aluminum. It was then increased to 50%, which affected Indian exports of about $ 7.6 billion. India argued in the World Trade Organization (WTO) that this action of America is a safeguard duty imposed in the name of ‘national security’, which is against the WTO rules. The US refused to negotiate the matter, after which India started legal preparations for retaliation under the WTO rules.
Which products can be tariffs
According to government sources, counter -tariffs will be imposed on a limited set of American goods. These items will be selected in such a way that the revenue from tariffs is equal to the loss caused by the US to Indian exporters. Officials say that the US is talking about bilateral trade agreement on the one hand, but on the other hand it is taking unilateral steps against the Indian economic interests, which is India’s right to answer.
Billions of dollars trade at stake
The US sells more than $ 45 billion goods to India every year, while the exports from India to the US were up to $ 86 billion before the recent tariff. Increasing tariff war can change trade deficit and affect bilateral economic relations. In February, Prime Minister Narendra Modi and President Trump had targeted the trade to increase the trade by $ 500 billion but India rejected the US demand in agriculture and sensitive areas, which stopped the talks.