Tarrif between india and america

www.hinsoli.com December 18, 2024

Terrif between india and america

The tariff issues between India and the United States primarily revolve around trade imbalances, market access, and import/export duties. Here’s an overview of the key points in their trade relations:

1. U.S. Concerns on Indian Tariffs:

The U.S. has often criticized India for high tariffs on American products, particularly in sectors like agriculture, automobiles, and technology.
Notable examples include:
- Automobiles: India imposes tariffs of up to 100% on imported cars.
- Technology: Tariffs on electronic goods and medical devices, such as stents, are a contentious issue.

2. India's Stand on Tariffs:

India argues that its tariffs are within the limits set by the World Trade Organization (WTO).
India also justifies its tariffs as a way to protect domestic industries and promote self-reliance under initiatives like "Make in India."

3. Generalized System of Preferences (GSP):

In 2019, the U.S. removed India from its GSP program, which allowed duty-free exports of certain Indian goods to the U.S.
This impacted Indian exporters, especially in sectors like textiles, jewelry, and pharmaceuticals.

4. Areas of Cooperation and Disputes:

Energy: The U.S. exports crude oil and LNG to India, with minimal tariffs.
Agriculture: India imposes high tariffs on products like almonds and apples, which the U.S. wants reduced.
Steel and Aluminum: The U.S. has imposed tariffs on Indian exports under Section 232, which India has challenged at the WTO.

5. Recent Developments:

In 2023, India and the U.S. worked on resolving some trade disputes through bilateral negotiations.
Both countries aim to boost sectors like technology, defense, and renewable energy while reducing trade barriers.

Conclusion:
India and the U.S. have a complex trade relationship marked by cooperation and disputes. While tariffs are a contentious issue, both nations recognize the importance of strengthening their economic ties and have shown willingness to negotiate and resolve trade barriers.