India-US relations have been improved year after year, when US President Bill Clinton visited India for the first time in the Vajpayee government. After this, George is busy or Obama or Trump himself and Joe Biden India and America have always seen warmth. Whether it is a business relationship or connected to the defense sector. Amidst all this, recently, US President Donald Trump imposed reciperochl tariff on 60 countries of the world including India at 4 pm on April 2 (US time).
The US President announced the reciperook tariff, describing India as a very tough partner. At the same time, Trump called Prime Minister Narendra Modi a great friend, but also added it, but you are not behaving us correctly. After this, he imposed 25 percent tariffs on India’s auto sector and 26 percent on the rest of the product. Now the question arises whether India will suffer losses due to this reciperook tariff or will India take advantage of it more than losses?
26 percent tariff on China was imposed in India
Donald Trump involved 60 countries including India and China was also included in the countries which imposed tariffs on 2 April. While Trump announced 26 percent tariff on India, 34 percent tariff was imposed on China. Amidst all this, there was a warm atmosphere between China and America and the next day, China announced 34 percent tariff on all America products. Now the impact of all this has started appearing on the companies working in China.
BTA meeting between US and India
A few days before the tariff announcement of US President Donald Trump, the first meeting was held between India and the United States under the Bilateral Trade Agreement (BTA). In which there was talk of extending the trade between the two countries from $ 190 billion to $ 500 by 2030. In this meeting, the US has demanded fee concessions from India in some industrial goods, vehicles, liquor, petrochemical products, dairy, agricultural goods. The effect of which was that America did not put any tariff on India’s dairy products. Also, there will be more meeting of BTA in the coming months, in which the tariff is sure to be discussed.
American company may come to India from China
China is currently the world’s largest manufacturing hub. All this has happened due to the convenience given by the Chinese government to companies. Now a trade war between China and America has started. Both countries are showering tariffs on each other. In such a situation, the American company in China can shift its plant towards India. The latest name is Tesla in it, which will currently sell by importing the CBU (Combined Built Unit) in India in India, but in the coming days, Tesla’s electric car can start to be built in India.
At the same time, Apple has already started expanding its production in India. The company has promoted iPhone manufacturing in India, and it is estimated that about 25% of the global iPhone production will be in India in the near future. This growth is partially due to tariffs imposed by the trump administration, which has made construction less attractive in China and Vietnam. Apart from this, many other American company can move to India with China, which is natural for India to benefit.