India next on Trump’s list?

The Asian Age.

Opinion, Edit

First Mr Trump has already taken a dispute with India to the World Trade Organisation over what he sees huge export subsidies on several items.

US President Donald Trump (Photo: AP)

India is keeping its fingers crossed following the hefty tariff announced by President Donald Trump on Chinese imports as there are fears that India could be next on his hit list. His move is unpopular among his own Republican partymen as it would make consumer and other items more expensive for their constituents and also hit exports of US items like Levi’s jeans. But Mr Trump is driving his agenda of America First and has brought back many companies that had set up their business centres outside the US with attractive incentives.

First Mr Trump has already taken a dispute with India to the World Trade Organisation over what he sees huge export subsidies on several items. He recently took up the issue of hefty duties on high premium Harley Davidson motorbikes when he met Prime Minister Narendra Modi. Mr Trump wants India to bring down its duties from the current 13.4 per cent and is expected to take up this issue with external affairs minister Sushma Swaraj. However, India has done well to point out that the trade gap of $29 billion between the two countries is narrowing with growing imports of gas and planes from the US and was already down by $1 billion. India has an order of 500 Boeing airplanes and is one of the biggest clients of Boeing. So it would be unfair of the US to equate India with China whose trade grew by $25 billion this year. India is the ninth largest trading partner of the US and exports rice, specially Basmati, wheat, fruits, cereals, meat, tea, coffee and cotton. It also exports readymade garments on a large scale.

Unlike China India does not insist that American companies should have local partners and has even relaxed its rule of a certain percentage of indigenisation in the case of Apple that has set up a manufacturing unit in Bengaluru.

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