Trump Imposes Tariffs on India: Full Breakdown and Impact
During his presidency, Donald Trump took a hard stance on global trade, targeting multiple countries with tariffs. India was among those affected. The United States under Trump ended certain trade benefits for India and imposed tariffs on a range of goods. Here is a clear breakdown of what happened, how much tariff was imposed, and what it meant for both countries.
Main Reasons for the Tariffs
End of Preferential Trade Status
In June 2019, the Trump administration officially removed India from the Generalized System of Preferences. This trade program allowed India to export nearly six billion dollars worth of goods to the United States without paying import duties.
Trade Imbalance Claims
Trump claimed that India was not providing fair and reasonable access to its markets for American products. This included concerns over high import duties India placed on American goods and restrictions in sectors such as medical devices, agriculture, and e-commerce.
Tariffs Imposed by Trump on India
Duty Increases on Indian Goods
After ending the trade preference, Indian goods that previously entered the US duty-free were now subject to standard US import tariffs. These tariffs ranged from 4 percent to 10 percent on affected products. This included:
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Leather products
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Jewellery
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Auto parts
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Certain textiles
The total value of goods affected was approximately six billion dollars annually.
India’s Response to US Tariffs
Retaliatory Tariffs on US Goods
India responded by imposing higher tariffs on 28 American products. These included:
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Almonds
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Walnuts
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Apples
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Chickpeas
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Chemicals
The increased tariffs on almonds alone had a major impact, since India is one of the largest buyers of American almonds. India raised the duty on almonds by about 20 percent. The new tariff on apples increased from 50 percent to 70 percent.
Impact on US-India Trade Relations
Strained Economic Ties
The tariff battle created tension between the two countries. While trade talks continued, the trust between the two economies was tested. American exporters faced higher costs, and Indian industries lost some of their advantage in the US market.
Push for a Trade Deal
Despite the dispute, both nations continued to seek a trade agreement. Several rounds of negotiations were held, but a full trade deal was not finalized during Trump’s presidency.
Frequently Asked Questions
Why did Trump impose tariffs on India?
He argued that India was not offering fair access to its market for American companies, especially in key sectors.How much tariff did the US put on India?
After ending India’s trade benefits, goods that were previously duty-free were taxed between 4 and 10 percent.What is the Generalized System of Preferences?
It is a US program that allows certain imports from developing countries to enter the United States without paying tariffs.How did India respond to US tariffs?
India placed higher tariffs on 28 US products, including almonds, apples, and walnuts.Did these tariffs affect trade between the countries?
Yes, they led to reduced trade in certain sectors and created tension in economic relations.Let me know if you want this rewritten for a presentation or in a shorter version.