Five reasons why Donald Trump proves wrong in the India-US Tariff dispute

  

Five reasons why Donald Trump proves wrong in the India-US Tariff dispute

Five reasons why Donald Trump proves wrong in the India-US Tariff dispute

New Delhi, Agency. US President Donald Trump and PM Narendra Modi met on Friday during a dispute between India and the US on tariffs. On Friday morning, these two leaders met in Osaka, Japan. This was the first meeting of PM Narendra Modi and Trump after the opposition of the US President on the rise in tariff by India. In this meeting lasted for 40 minutes, there was talk about PM Modi and Trump between trade, defense relations, 5G communication and Iran. This meeting of Modi and Trump was very special and important because under the 'America First' policy, Trump has protested against India's excess duty on American products.

But the response of US President Donald Trump to the tariff dispute is absolutely wrong in many ways. Let's try to understand it in five points. These five points will prove that how Donald Trump, who is convicting India on the tariff case, is proving to be wrong on his own.

1)  For the World Trade Organization, India has cut more than the promise made to the World Trade Organization in its import duty rate. The Bound Rate of World Trade Organization is 40%. The average import duty on industrial goods is 10.2%. In terms of business weighted average import duty on industrial goods, on industrial goods, it is 5.6%.

2) India's average import duty rate is much higher than many developing economies. Where India's Average Import Duty Rate is 13.8%, Argentina's average import duty rate is 13.7%. South Korea has the average import duty rate, Brazil's average import rate is 13.4%, then the average import duty rate in the US is 3.4%. That is, in India, India is more liberal than many countries with goods imported from abroad.

3) Like India, America also imposes high tariff on many products. Rather, he imposes more tariff than India on many products. Like if India speaks about 150% tariff on alcohol, then in the US, tariffs are imposed upto 350% on tobacco. In India, 50% tariff is levied on motorcycles, 164% tariff is imposed on groundnut in the US. Similarly, in India, network router and mobile parts are charged 20% tariff, 48% tariff is imposed in the US.

4) India has seen rapid growth in imports in US over the last few years, while there has not been much speculation in the US exports to India. In 2017-18, when India's imports were 47.9% during this period, during this time, exports from India to the US stood at 26.6%. In the year 2018-19, when India's imports in the US were 52.4%, during this time the export of India was only 35.5%.

5) The latest tariff dispute between India and America was initiated by the United States. It started when the import duty on India's aluminum and steel was increased from the US side. The exemption given to India under this was also eliminated, in which India's products had significant impact on $ 6.6 billion. After that, India responded with increase in import duty on US $ 1.1 billion of 28 products.