US President Donald Trump has announced to impose a reciprocal tariff on India from April 2. But India hopes that it will survive this tariff. At the same time, under the ongoing bilateral trade agreement between the two countries, the tariff will be offered. Experts say that there is scope for imports in import fee from India and domestic is supporting such cuts.
India’s Commerce and Industry Minister Piyush Goyal is currently in the US and soon the bilateral trade agreement between the two countries can be discussed in Washington DC. It is believed that tariffs can be cut on many items and products. According to a Business Today report, India is expecting to reduce the effect of Reciprocal Tariff to some extent by cutting tariffs on several objects including automobiles.
What are the things India come from America?
Talking about the major business things to be exported to India from America, raw oil, coal and industry things are included. Experts say that there is scope for tariff cuts on these goods without causing more damage to domestic companies.
Business of $ 190 billion
In addition, tariff cuts are required to be offered to save bilateral trade as America is the largest business partner and largest exporter in India. The turnover between these two countries is $ 190 billion and America accounts for about 18 percent in India’s exports.
What will happen after the tariff? Increasing concern
After PM Narendra Modi’s meeting with US President Donald Trump, the two countries decided to deepen trade relations and doubled it by 2030 to $ 500 billion. However, after that Trump has once again announced that mutual tariffs will be applicable from April 2, which has increased the concern in India what effect it will have on exports?
Ajay Sahay, Director and CEO of the Federation of Indian Export Organization, said that it is difficult to estimate how this tariff system will work and whether the fees will be levied on the basis of country level or on product level. He said, “One option is that all will be charged by the US about 5%, because the tariff difference between India and the US is 4.95.”
There can be discussion between the two countries about these things
To take the business between the two countries up to $ 500 billion by 2030, Sahay said that he is expected to discuss the concessions based on the products as part of the business deal. He said that there is a possibility that as part of the discussion, both countries will sit with the list of products on which they want concessions.
Tariff discounts can be found on these things
The major items on which the US can demand a charge cut include automobiles, electric vehicles, medical and electronic goods. Similarly, India can demand discount on tariffs on goods including auto and auto components, pharmaceuticals, textiles and footwear.