Trump, during his election campaign, has called India an “abuser” of import tariffs, a claim that echoed his October 2020 statement labelling India the “Tariff King”.
Trump on Saturday also warned BRICS countries against any move to replace the US dollar and has sought a commitment from the nine-member group that includes India, Russia, China, and Brazil.
In the wake of such statements, brainstorming is fundamental to discuss the trade relations as the US is the largest trading partner of India.
Trade experts have time and again stated that Trump’s claim that India is an “abuser” of import tariffs is unfair as many nations including America protect their domestic industries by imposing high customs duties on certain products.
According to WTO’s World Tariff Profiles 2023, the US also imposes high duties on items like dairy products (188 per cent), fruits and vegetables (132 per cent), coffee, tea, cocoa and spices (53 per cent), cereals and food preparations (193 per cent), oilseeds, fats and oils (164 per cent), beverages and tobacco (150 per cent), fish and fish products (35 per cent), minerals and metals (187 per cent), and chemicals (56 per cent).
An expert said that if the US would seek a cut in customs duties for some of their products, India should also demand a similar reduction to get greater market access for domestic items.
The US was the largest trading partner of India in 2023-24. India’s exports stood at USD 77.51 billion, while imports aggregated at USD 42.2 billion in the last fiscal.
Commerce and Industry Minister Piyush Goyal has recently stated that the US President is a “friend of India” and India-US friendship will only continue to blossom and grow further.
India’s trade relations with the US will continue to grow irrespective of the change in regime in America and according to the commerce ministry data, India’s exports to the US jumped to USD 39.2 billion in October against USD 21.46 billion in October 2015.
During 2001-23, at a Compounded Annual Growth Rate (CAGR), India’s exports to America rose by 10.48 per cent. In this period, the US imports from the world have grown by 4.76 per cent.
“The India-US economic integration is growing over the period of time and that is a good thing for us and I trust that it will continue to grow,” the official said.
During April-October this fiscal, the country’s exports to America rose by 6.31 per cent to USD 47.24 billion, while imports grew by 2.46 per cent to USD 26 billion.
Experts have also stated that Indian exporters may face high customs duties for goods like automobiles, textiles and pharmaceuticals, if the new US administration decides to pursue the ‘America First’ agenda.