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regular-article-logo Saturday, 21 September 2024

Donald Trump reignites trade tensions with India ahead of PM Narendra Modi's visit to US

In his bid for re-election, Trump has once again singled out India for its tariffs, calling the country an 'abuser' of trade rules, echoing his 2020 claim that India is the 'Tariff King'

Our Special Correspondent New Delhi Published 21.09.24, 12:00 PM
Donald Trump.

Donald Trump. File picture

Former US president Donald Trump has reignited trade tensions with India on the eve of Prime Minister Narendra Modi’s visit to the US from September 21 to September 23.

In his bid for re-election, Trump has once again singled out India for its tariffs, calling the country an “abuser” of trade rules, echoing his 2020 claim that India is the “Tariff King”.

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As he ramps up his 2024 campaign, trade has emerged as one of Trump’s key talking points, appealing to his base of protectionist voters.

Trump’s assertions have been challenged by trade experts and think tanks.

The Global Trade Research Initiative (GTRI) dismissed his tariff claims as overly simplistic, noting that while India imposes high tariffs on some products, such practices are common across major economies — including the US itself.

According to a GTRI report released on Friday, Trump’s claims oversimplify the complex reality of international trade.

The report cites data from the World Trade Organization’s (WTO) World Tariff Profiles 2023, showing that the US itself imposes significant tariffs on various products.

These include dairy products at 188 per cent, fruits and vegetables at 132 per cent, cereals and food preparations at 193 per cent and oilseeds, fats, and oils at 164 per cent.

Other high-tariff items in the US include beverages and tobacco at 150 per cent, minerals and metals at 187 per cent and chemicals at 56 per cent.

“These figures demonstrate that the US, like India, protects certain sectors of its economy with high tariffs,” the GTRI said.

The think tank stressed that while India does levy high tariffs on certain goods, such as automobiles and alcoholic beverages, the overall tariff landscape is more nuanced than Trump’s portrayal.

The GTRI contends that Trump has ignored the broader picture.

“Trump’s argument singles out products with the highest tariffs, overlooking the more representative average and trade-weighted tariffs that reflect India’s trade policy,” said GTRI founder Ajay Srivastava.

“While it’s true that India imposes high duties on certain items, many countries do the same to protect their industries.”

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