Republican presidential nominee and former U.S. President Donald Trump has labelled India the ‘tariff king’
| Photograph Credit score: Getty Pictures through AFP
Former U.S. President Donald Trump’s current declare that India is an “abuser” of import tariffs is unfair as many countries together with the U.S. defend their home industries by imposing excessive customs duties on sure merchandise, suppose tank GTRI mentioned on Friday.
It mentioned that in response to WTO’s World Tariff Profiles 2023, the U.S. additionally imposes excessive duties on objects like dairy merchandise (188%); fruit and veggies (132%); espresso, tea, cocoa and spices (53%); cereals and meals preparations (193%); oilseeds, fat and oils (164%); drinks and tobacco (150%); fish and fish merchandise (35%); minerals and metals (187%); and chemical substances (56%).
These numbers show that the U.S. additionally protects particular merchandise of its financial system with excessive tariffs, GTRI mentioned in a report.
Whereas India does impose excessive tariffs on sure objects, together with wines and vehicles, the World Commerce Analysis Initiative (GTRI) argued that these figures don’t characterize the general tariff panorama.
“Trump’s argument singles out merchandise with the very best tariffs whereas neglecting the typical and trade-weighted tariffs that higher characterize India’s commerce coverage,” he mentioned.
On September 17, Mr. Trump known as India an “abuser” of import tariffs, a declare that echoed his October 2020 assertion labelling India the “Tariff King”.
“Whereas it’s true that India imposes excessive duties on choose merchandise, Trump’s argument overlooks important context, making his accusations unfair,” GTRI Founder Ajay Srivastava mentioned, including that many countries defend home industries by imposing important tariffs on sure objects.
India’s common tariff price of 17% is increased than the US’s 3.3%, however just like different main economies like South Korea (13.4%) and China (7.5%).
It additionally mentioned that India has demonstrated its openness to free commerce by eradicating customs duties for imports from FTA (free commerce settlement) companions comparable to ASEAN (Affiliation of South East Asian Nations), Japan, and South Korea.
“Nonetheless, regardless of India’s willingness, the US has been reluctant to cut back tariffs via FTAs. This hesitation is obvious within the Indo-Pacific Financial Framework, the place no tariff cuts have been included, reflecting the US’s cautious strategy,” Srivastava mentioned.
If the U.S. is eager on zero tariff entry into the Indian market, it ought to think about negotiating a free commerce settlement with India, he added.
“Whereas India wants critical tariff reforms, the label of ‘Tariff King’ doesn’t maintain up when in comparison with the tariff practices of the USA and different main economies,” he added.
Additional, he mentioned that Mr. Trump doesn’t discuss common tariffs however singles out merchandise with the very best tariffs charged by India.
“For instance, on January 24, 2019, he mentioned India fees a excessive 150% import tariff on the U.S. whiskey. Certain sufficient, India imposes excessive duties on many objects. 150% on whiskey and wines 100-125% on vehicles. However India just isn’t alone in doing so,” the GTRI mentioned.
In actuality, it mentioned, most international locations have excessive tariffs on a couple of items comparable to Japan (457%), Korea (887%) and the U.S. (350%).
Explaining the realms behind these excessive duties, Srivastava mentioned that almost all international locations cost excessive tariffs on a couple of objects with a cause.
“Japan might like to guard its rice farmers, the US its tobacco farmers and India its rising wine business. But excessive tariff objects don’t characterize the tariffs at which precise commerce occurs for many objects. Common tariff and commerce weightage tariff higher characterize a rustic’s tariff profile,” he added.
Revealed – September 20, 2024 11:52 am IST
