Trade with India means exchange of Goods and Services
The White House has highlighted the high tariffs imposed by several countries on U.S. goods, with a particular focus on India and Canada.
During a press briefing, White House Press Secretary Karoline Leavitt mentioned that India imposes a 150% tariff on American alcohol and a 100% tariff on U.S. agricultural products.
This was seen as a barrier to exporting products like Kentucky bourbon into India.Well if Trump wants India to drink American bourbon then he has to accept more Indians entering USA to provide Services ….its as simple as that.
President Trump is supposed to be commitment to reciprocity and fair trade practices as per Leavitt.
Therefore to seek a balanced trade relations exchange of goods has to be together with exchange of Services too.
Trump may be vocal about the issue, stating that the global community has been “ripping off” the U.S. for years. He has imposed tariffs on countries like Mexico, Canada, and China, citing border control issues and the need for fair trade.
Recently, Trump delayed tariffs on Mexico and Canada temporarily but warned that tariffs could increase over time. “Look at Japan, tariffing rice, 700 per cent.
President Trump believes in reciprocity and it is about…time that we have a president who actually looks out for the interests of American businesses and workers.
And all he’s asking for at the end of the day are fair and balanced trade practices and unfortunately, Canada has not been treating us very fairly at all over the past several decades,” she added.
However in case of India it is the other way round. West European Nations have been looting India since 1747 and USA joined them from 1950s.
Trump as India’s tariffs, are “massive” and stating that it is “next to impossible to sell anything to India” due to these high tariffs.
However, he noted that India has agreed to significantly reduce its tariffs following pressure from the U.S.. Trump Bhai ….no one pressurises India not even the President of USA.
On tariffs both countries can hold talks bilaterally as per WTO rules but talks has to cover “ export “ of Indian services utilizing the Indian massive commodity …..manpower !!
The issue of tariffs has been a point of contention in U.S.-India trade relations. India has some of the highest tariff rates globally, with an average applied tariff of 13.8%, according to the World Trade Organisation.
These high tariffs affect a wide range of U.S. exports, including agricultural products, electronics, and automobiles. In response, President Trump has called for “reciprocal tariffs,” aiming to impose equivalent duties on imports from countries with high tariffs on U.S. goods.
To address these concerns, India has reportedly considered offering tariff reductions on more than 30 goods, including electronics and automobiles, as part of its strategy.
However export of Services will be added to te negotiations. This move aligns with India’s broader efforts to maintain smooth trade relations while balancing its protectionist policies.
The ongoing trade tensions underscore the complexities of global commerce and the challenges of achieving balanced trade agreements between major economies like the U.S. and India.
