The tariff game is only beginning to heat up in the international trade spectrum. This is because the United States imposed a flat 25 per cent tariff on Canada and Mexico for all goods that these countries bring to the United States, which was followed by Canada's retaliatory and reciprocative tariffs of 25 per cent on Donald Trump's United States.
Zero Tariffs Please
Now, as per new reports emerging at this hour, the US administration under US President Donald Trump has asked for a nil or zero tariffs on American goods entering India.
As per reports from CNBC TV18, these demands cover all American goods entering India, barring agriculture goods traded between the United States and India.
This development comes at a time when the trade 'arm-twisting' or tactic, as some have deemed these tariffs to be, has invoked varied responses from different partners of the United States. | Pixabay
Tale Of Tariffs
Previously, towards the end of February, the Trump administration unveiled its plans to impose reciprocal tariffs on nations. This would mean the US would impose tariffs in tune with the tariff levied on American goods entering any country.
This development comes at a time when the trade 'arm-twisting' or tactic, as some have deemed these tariffs to be, has invoked varied responses from different partners of the United States.
While China and Canada retaliated with their own tariffs, South Korea came out and claimed that their tariffs with the United States, a key ally for the Korean nation, are close to zero.
With this, South Korea asserted its adherence to Trump's policies. In addition, it has also exhibited the fragility of international trade. |
With this, South Korea asserted its adherence to Trump's policies. In addition, it has also exhibited the fragility of international trade.
Trade Deficit
It is to be noted, that for Donald Trump, and the incumbent administration, tariff alone is not a factor. This, as Trump also has penchant for slashing trade deficit with its trading partners.
One of the reasons why Trump has threatened his European allies with tariffs precisely is grounded in the purported trade deficit that the US shares with these countries. Whether India will be able to do a balancing act on this particular realm, is something that remains to be seen.
