Power is changing in America and with this a lot is going to change for India as well. America’s newly elected President Donald Trump has announced even before taking the throne that he will increase the import duty on Indian products, because India also imposes heavy tariff on his products. Although Trump is said to be a well-wisher of India, but after this statement India has also started the exercise to avoid tariff war. It is believed that to avoid tariff war with America, India may soon reduce tariff on some American products,due to which these products will become cheaper in India.

According to the Economic Times, officials associated with the matter say that India has started a sector-wise review to find out which American products can have import duties reduced without much impact. An official said that ministries and departments have started reviewing the tariffs imposed on them on American products. Experts say that India may give some relaxation in the tariff to allow American products to access its market.

On which products is the tariff expected to be reduced?

America had earlier asked India to reduce tariffs on superbikes like Harley Davidson, medical devices and equipment and dairy products. If we look at the figures, India imports the most 5 things from America. These mainly include mineral fuel worth $12.9 billion, pearls worth $5.1 billion, nuclear reactors worth $3.7 billion, electric machinery worth $2.3 billion, aircraft worth $2.2 billion. It is obvious that tariffs can be reduced on some of these 5 products and the 3 products mentioned above.

america also imposes heavy trafics

America has also imposed tariffs on Indian products. Indian officials say that tariffs ranging from 130 percent to 190 percent are imposed on dairy products, fruits and vegetables, grains and packaged food and oil in America. Another official says that any decision regarding tariffs will be taken only when concrete steps are taken by Trump after January 20.

What did Trump say?

Donald Trump had said recently that India imposes tariffs of 100 to 200 percent on some of our products. If they impose tariffs on our products, we will also impose import duty on their products. Trump had also said that if a bicycle is sent from America to India, then a heavy import duty is imposed on it in India, whereas we do not impose any duty on bicycles coming from India. This situation will have to change now.