India and the United States have been on the verge of friendship several times in the past several years.
Both have been talking about each other as a natural partner. Strong relationships between the world’s largest and oldest democracies have been described as a need for a new era.
But money is such a thing, which keeps the blows in good friendship. And these days India and America will understand this point.
India has increased custom duty on 29 items coming from the US. These include pulses, iron and steel products. But why was this step taken?
Why Modi’s reversal?
The Modi government has done this in response to this. Actually, the US has increased the tariff on some steel and aluminum products in one-way decisions.
India exports these two products to the United States, due to which it will pressurize $ 24 million.
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There is a continuous battle of war on the business front these days. The US is adopting protectionist policies and increasing import duty these days, in which trade war appears to be spreading.
On the other hand, the European Union has also decided to impose import duty on several products coming from the United States and China is also thinking about doing so.
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India imports the world’s largest almonds in the world. In such a case, by importing 20% on almonds and imports duty of 120% on paper, he also wants to counter the European President and President of Donald Trump, like the EU and China, on the decision to increase tariffs on aluminum.
India had last month asked the United States to give relief on the tariff front. It was argued that his steel and aluminum exports are quite small.
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But India’s appeal was ignored by the United States, after which he decided to go to the World Trade Organization.
According to the news agency Reuters, since Donald Trump took over, the turmoil is increasing in the trade between India and the US.
Where is the business between the two?
In 2016, the two-way trade between the two reached $ 115 billion, but the Trump government wants to reduce its $ 31 billion loss with India.
Earlier this year, Trump had asked India to remove duty imposed on Harley-Davidson Motorbike. After his insistence, Prime Minister Narendra Modi had reduced import duty on expensive motorcycle from 75 percent to 50 percent.
But the Trump government was not satisfied with this too. He said that there is no duty on the Indian bike sold in the US and India should do the same.
Actually, the trump is quite aggressive these days. And this is because the US economy is looking strong now.
What is the policy of Trump?
In an attempt to implement the promise of ‘America First’, Trump has adopted a tough attitude towards the business. They have increased the tariff of 10% on steel and 10% on aluminum.
However, India’s steel-aluminum exports to America are not much like Canada, Mexico or China but these tariffs also apply to India.
In reply to the 29 items that India has imposed or increased duty on duty, there will be a burden of US $ 235 million. This will apply on 4th August. India has wrapped up the WTO in relation to the settlement of disputes to the US.
But this is not the first time. Since the arrival of Trump, the business has settled between India and the USA. And it has happened before them too.
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During Barack Obama’s era, the US banned the Poultry imports and the WTO was pulled out due to the subsidy program for the domestic solar panels manufacturer. And India has dragged the United States into this panchayat for the inhibition of business.
According to the Indian Foreign Ministry, the two-way trade between India and the United States was $ 104 billion in 2014, which rose to 114 billion dollars in 2016. The two-tier merchandise trade was at $ 66.7 billion.
India’s exports to USA stood at $ 46 billion, while imports were $ 21.7 billion.
In September 2014, during the Indian Prime Minister’s visit to America, the two sides made the goal of taking a two-way turnover of product services to $ 500 billion.