"No longer acceptable" Donald Trump slams India over tariffs
Donald Trump said that India decided to impose additional customs duties on 29 US products and Washington will no longer accept India's tariffs on US products.
US President Donald Trump said on July 10 that “India has long had a field day putting Tariffs on American products. No longer acceptable!” Tweet done by Trump tweet is being taken as latest trade war between India and USA, both are two major economies who are clashing over import tariffs on each other's products.
Indian tariffs on US products
India has tariffs on U.S. products such as Harley-Davidson motorcycles and U.S. grown apples, among others. In June, Trump said India’s 50% levy on Harley-Davidson bikes was “unacceptable” and threatened to increase the tariff on import of Indian bikes to the US.
• The India Government on June 21 last year decided to impose duties on Harley-Davidson in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products.
• America, in March last year, imposed 25 per cent tariff on steel and a 10 per cent import duty on aluminium products.
• India raised high tarrifs on 28 items just after that, products including in this list was almond, pulses and walnuts. These products are majorly exported from the US. India has done this in term of retaliation to America's withdrawal of preferential access for Indian products.
• Then, US President Donald Trump has terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that New Delhi has not assured the US that it will provide "equitable and reasonable access" to its markets.
• Donald Trump tweeted after few days when he met India's Prime Minister Narendra Modi at G20 Summit in Osaka. Top leaders of both countries talked on bilateral trade disputes and agreed for a meeting of their commerce ministers to sort out the issues.
What is GSP?
The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. Donald Trump and his administration looking for India to decrease the tariff rates and embrace "fair and reciprocal" trade.
This system of GSP helps sustainable development in poor countries by assisting them to increase and diversify their trade with the United States. Least developed countries gets maximum benefits from the GSP program.