US President Donald Trump on Wednesday announced to impose recipes on many countries of the world. Now it has been announced to impose 27 percent recipe tariff or import duty on Indian goods going to American markets. The industry sector and experts believe that these tariffs will create challenges for Indian goods, but India’s situation still remains better than its competitive countries.
A list of questions and answers has been prepared to explain these issues and Trump’s decision. With this, information can be obtained in detail about 26 percent tariffs imposed on India by Trump and its impact.
Question: What are tariffs?
Answer: These are custom duty or import duty that are imposed on imports of goods. The importer of the country has to pay this duty. Generally, companies put the burden of this tax on the last consumer.
Question: What are reciperochl tariffs?
Answer: These taxes are levied by a country to increase duty on their business partners or to compete with high tariffs. In a way, Tit for Tat Tax, means such as tit.
Also read: Electronics, jewelery and medicines … What will affect India, the world and you with the new tariff of Trump
Question: How much tariff has America imposed on India?
Answer: 25 percent tariffs are already being imposed on goods coming from India like steel, aluminum and auto. For the rest of the product, India has 10 per cent base line tariffs between April 5 and 8. After this, from April 9, this tariff will increase to 27 percent for India. This decision of America has affected more than 60 countries.
Question: Why has America announced these tariffs?
Answer: According to the US, these taxes will boost domestic manufacturing in the country and trade deficit will decrease. The US is currently facing heavy trade imbalances with many countries, especially China. In 2023-24, the US has a trade deficit of $ 35.31 billion in terms of goods with India.
Question: Which sectors are out of these tariffs?
Answer: According to the analysis of Think Tank GTRI, these include essential and strategic items like pharmaceuticals, semiconductor, copper and energy products like oil, gas, coal and LNG.
Question: What will be the effect of these tariffs on India?
Answer: According to a government official, the Ministry of Commerce is analyzing the impact of 27 percent of the recipes imposed by the US. However, this is not a shock for India. FIEO said that these tariffs offer challenges for Indian companies but India’s situation remains better than its competitive countries. According to the exporting organization, the proposed trade agreement between Indo-US will help the domestic industry to overcome the impact of these tariffs.
GTRI said that overall America’s tariff system can prove to be helpful in taking advantage of the global supply chain for India. However, to take full advantage of these opportunities, India will have to increase to trade easily, invest in logistics and infrastructure and maintain stability at the level of policies.
Also read: No friends do this … What did India, China, Australia say on ‘Trump Tariff’
Question: What is the trade agreement between India and America?
Answer: During Prime Minister Narendra Modi’s visit to Washington in February, the two countries announced a negotiation on the agreement to increase bilateral trade by US $ 500 billion by 2030. Their goal is to finalize the first phase of the agreement by September-October this year.
Question: What is a trade agreement?
Answer: In such an agreement, two business partners either reduce custom duty to a great extent or eliminate it on the maximum number of business between them. They also make the rules easier to promote business in services and investment.
Question: How much tariff has America imposed on India’s competitive countries?
Answer: 54 percent on China, 46 percent on Vietnam, 37 percent on Bangladesh and 36 percent on Thailand.
Question: Are these recipes according to the tariff WTO?
Answer: According to International Trade Expert Abhijeet Das, these tariffs clearly violate the rules of the World Trade Organization (WTO). He said that it is also a violation of MFN (favorite nation) obligations and fixed rates and the member country of the WTO has every right to take complaints to the institution.
Also read: Friends punished, enemies have fun … Why is Russia and North Korea out of Trump’s tariff list
Question: What is bilateral trade between India and America?
Answer: America was the largest trading partner in India from 2021-22 to 2023-24. America accounts for about 18 percent of India’s total goods exports, 6.22 percent in imports and 10.73 percent in bilateral trade. India’s trade surplus (difference between import and export) in terms of goods in 2023-24 with the US in 2023-24 was US $ 35.32 billion. It was US $ 27.7 billion in 2022-23, US $ 32.85 billion in 2021-22, US $ 22.73 billion in 2020-21 and US $ 17.26 billion in 2019-20.
In the year 2024, drug formulation and biological (US $ 8.1 billion), telecop equipment (US $ 6.5 billion), precious stone (US $ 5.3 billion), petroleum products (US $ 4.1 billion), gold and other precious metal jewels (US $ 3.2 billion), core prepared metal jewels (US $ 5.3 billion), petroleum products (US $ 5.3 billion), petroleum products (US $ 4.3 billion), gold and other precious metal jewels (US $ 3.2 billion) in the major exports to the US in 2024, $ 4.1 billion. Products (US $ 2.7 billion) are included.
Import includes crude oil (US $ 4.5 billion), petroleum products (US $ 3.6 billion), coal, coke (US $ 3.4 billion), cut and polished diamonds (US $ 2.6 billion), electric machinery (US $ 1.4 billion), aircraft, spacecraft and parts (US $ 1.3 billion) and gold (US dollars).