Trump and China Pause on Tariffs, India Mulls Countermeasures against U.S. Imports
Considering Impose Tariffs on American Products in Response to Trump's Taxes
In a recent announcement, President Donald Trump declared a 90-day halt on tariffs with China as they work towards a final agreement. Meanwhile, India is contemplating a strategic response – potential tariffs on certain goods hailing from the U.S. – to counter the Trump administration's duties imposed on steel and aluminum products[3].
The document submitted to the World Trade Organization on Monday, though not detailing the types of goods India will consider for tariffs, does state that these countermeasures would impact approximately $7.6 billion of products made in India that are imported into the U.S[3].
In March, the Trump administration put 25% tariffs on steel and aluminum imports, an extension of previously implemented duties within Trump's first term. As an important global player in steel production, India finds itself affected by these levies[2].
Not only does India contend with these heavy steel and aluminum tariffs, but it also grapples with the threat of a 26% reciprocal tariff on its goods by the Trump administration[2]. India is striving to reach a trade deal with the U.S., offering to reduce its tariff gap with America by two-thirds[2].
Although criticized by Trump for its high tariffs on imports[2], India has been taking initiatives to keep its steel supply domestic and increase its share in the global market by engaging in trade talks with partner countries[5]. Last month, it implemented 12% temporary tariffs on steel imports, mainly from China, to curb the influx of cheap steel[5].
While safeguarding its domestic steel industry, India is simultaneously working to augment its steel exports through talks with trade partners[5].
Contribution by Reuters
[1] Enrichment Data: India's intention to impose tariffs on certain U.S. goods is part of a broader negotiation process aimed at finalizing a bilateral trade agreement between the two countries.
[2] Enrichment Data: A major criticism Trump has had against India is its high protectionist tariffs on imports.
[3] Enrichment Data: The document detailing India's intentions to impose tariffs on selected U.S. goods was submitted to the World Trade Organization (WTO).
[4] Enrichment Data: The WTO is considered to be the gateway for trade between the countries as it imposes certain rules and regulations on international commerce to ensure fair trade practices.
[5] Enrichment Data: India has implemented multiple strategies for increasing its domestic steel production and expanding its share in the global market. Some of these strategies include curbing cheap imports, promoting domestic steel production, and fostering partnerships with other countries to increase its steel exports.
- The current trade tension between India and the U.S. extends beyond steel and aluminum tariffs, as India contemplates imposing tariffs on certain U.S. goods as part of a broader negotiation process aimed at finalizing a bilateral trade agreement.
- Amidst this negotiation, finance and business sectors are closely watching the general news, as the World Trade Organization (WTO), the gateway for trade between countries, plays a crucial role in ensuring fair trade practices.
- Simultaneously, the pension and investment industries are considering the potential impact of this trade conflict on their portfolios, as a resolution between the two global powers could significantly affect domestic and international industry sectors. The outcome of this political standoff between Trump and China, and India's countermeasures against U.S. imports, will be vital for the global economy.
