On April 2 (Wednesday), US President Donald Trump has announced a 26% tariff on India under the reciperook tariff. After this decision, there has been a stir in Indian politics. Opposition parties have targeted the Modi government and described this decision as a threat to the country’s economy.
Congress leader Rahul Gandhi reacted sharply to Trump’s decision, saying, “American tariffs will ruin India’s economy.” Opposition parties are constantly attacking the Modi government on this issue. The Aam Aadmi Party and other opposition parties have also questioned the foreign policy of the government. He says that despite having better business relations with America, why was such a huge tariff imposed on India.
What is a reciperook tariff?
The reciperook tariff means import duty that the government of a country impose the goods coming from other countries. When a company asks for goods from abroad, then it has to pay this fee to the government. Usually, companies charge this expenses from customers.
How much a charge did the US impose on India?
The US had already imposed 25% import duty on India’s steel, aluminum, vehicles and their parts. Now, the US has decided to impose a 10% new fee between April 5 to 8 on the rest of the products coming from India. After this, this fee will increase to 27% from April 9. This decision of America will affect more than 60 countries.
How much fee was levied on India’s competitive countries?
- 54% on China
- 46% on Vietnam
- 37% on Bangladesh
- 36% on Thailand
What will be its effect?
For India, there may be difficulties in selling goods to America (exports), as Indian products will become expensive due to high fees. This can cause damage to Indian companies and increase pressure on the economy.
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