Why was US President Donald Trump finally adamant about imposing tariffs on India? Know this story.
DonaldTarriffStory: Why was US President Donald Trump finally adamant about imposing tariffs on India? Know this story.
Negotiations between India and the US regarding the trade agreement began in February, about a month after Trump assumed the presidency. That is, India was among the first few countries that gave priority to a trade agreement with the US as soon as possible. Both countries had also announced their delegations for trade talks. However, despite five meetings in the last five months, India-US could not reach an agreement.
US Vice President JD Vance visited India in April this year. The delegation that came with him also finalized the draft of the talks with India. It was believed that after this meeting, India got concessions in many areas. It was then revealed that India had proposed to the US not to impose any tariff on the export of its industrial products. Industrial products constitute 40 percent of the total exports to India from the US. India had also agreed to reduce the tariff rate on American cars along with alcohol. Also, to reduce America's bilateral trade deficit of $45 billion, he had assured to increase its energy and arms purchases by $25 billion.
It is said that by the time the fifth round of talks came, both the countries had resolved their differences. Trump had also announced to make a 'big deal' soon on this. However, despite this, the Trump administration was not happy with the reduction in tariffs from India. On the other hand, Indian officials were hoping that by giving tariff exemption only, they could save their agriculture and dairy sector.
According to reports, during the fifth round of talks, the Indian delegation demanded the removal of 10 percent basic tariff from America. Not only this, Trump also talked about withdrawing tariffs on steel, aluminum and auto sectors. However, when Japan and the European Union agreed to impose higher tariffs without talking to America on these sectors, it was seen as a victory for Trump.
After this, the Indian delegation got the indication that America would not reduce these tariffs. During this time, India also tried to reach an agreement on 15% tariff rate like other countries. On the other hand, when the conflict between India and Pakistan broke out in May this year, the Trump administration held talks with both the countries to stop it. However, Trump went a step ahead and started taking credit for the ceasefire between India and Pakistan. He talked about stopping the conflict on different platforms. However, India rejected his claim on every occasion. Trump's continuous claims further delayed the agreement between the two countries and finally India-US are standing at this crossroads on the issue of trade.
