There has also been a decline in goods exported from India to America for the fourth consecutive month.
Once again the rumor of ‘trade war’ has intensified in America. According to reports, American companies are demanding further expansion of the scope of the huge ‘tariff’ (import duty) imposed by President Trump. This demand is not small. It is reported that about 700 new items related to steel can be included in this list. If this happens, many things can be affected, from bicycles to baking trays used in homes. This step is being taken at a time when countries like India and China are already facing slowdown in the American markets.
American companies appealed to Trump
This demand is not coming from any one sector, but from all types of American companies, small, medium and big. From Indiana-based bicycle manufacturing company ‘Guardian Bikes’ to tomato canning company ‘Red Gold’ and firms making steel wheels for trucks, many industries have appealed to the US Commerce Department. These companies argue that the flood of foreign goods has harmed their domestic market.
‘Guardian Bikes’ in its application to the Commerce Secretary clearly stated that their ‘industry has come to an end’ amid the import of 1.1 crore bicycles in 2024. His indication is clear that due to cheap bicycles coming from outside, it is becoming difficult for American manufacturers to survive. Similar concerns have also been expressed by other companies, who want the government to take strict steps to protect them from foreign competition. These companies want more than 700 items to be added to the list released in August.
What is Trump’s ‘tariff’ plan?
this whole matter ‘Trump Tariff’ Is famous by the name of. The Trump administration has already imposed additional tariffs on 407 products related to steel and aluminum. In August this year, the administration expanded the scope of this tariff to include hundreds of other products (derivative products) made of steel and aluminum, on which duty of up to 50% was imposed.
Now companies want this list to be extended further. According to the Guardian report, 700 more items can be added to the new list. It has also been said in the notice that the tariff rates imposed by President Trump on goods coming from some selected countries will also be applicable on non-steel and non-aluminum parts of these products. This means it could be a multi-tier fee increase.
However, the debate continues over who ultimately bears the burden of these tariffs. When President Trump was asked if Americans were paying these tariffs, he said, “No, I don’t agree with that. They may be paying some. But when you look at the overall impact, Americans are benefiting tremendously.”
Your own policy became a problem
The path of trade war is not always straight, an interesting example of this is the complaint of ‘Red Gold’ company. Red Gold, which packs tomatoes in cans, is among the companies that have filed a request for the new tariffs. But he also has another complaint which shows the complexity of this entire policy.
The company said that they have to pay heavy tariffs on the tinplate steel used to make their cans. There is a 25% tariff on steel coming from the UK and up to 50% tariff on steel coming from other places. This situation shows that protectionist policies can sometimes harm the very domestic industries they are designed to protect. On one hand, companies want protection from cheap foreign finished goods (like bicycles), on the other hand they themselves are troubled by the tariffs imposed on raw materials (like steel).
All round attack on India and China
This new demand to increase tariffs in America is not good news for India and China. Both the countries are already struggling with their exports in the American market.
According to the data, Indian exports to America have declined for the fourth consecutive month across all sectors. This is a clear indication that the demand for Indian goods in the American market is declining, and if the scope of tariffs increases then this crisis may deepen further.
The condition of China is even worse. According to government data, there has been a huge decline of 25% in Chinese shipments to America. China’s total global exports in October also declined 1.1% from a year earlier, the weakest performance since February, the AP reported. Although President Trump and Chinese President Xi Jinping agreed last week to reduce the trade war, analysts believe that trade tensions are still impacting demand. If tariff is also imposed on these 700 new goods, it will be another big blow to major exporting countries like India and China.