India’s PM Narendra Modi (L) and US President Donald Trump (R)
New Delhi: Ever since Donald Trump became the President of America, its effect has also started appearing. Trump kept mentioning the target during the election campaign and now he has started implementing it. Meanwhile, such information is also coming out that India can reduce tax on some expensive goods imported from America. It includes a special type of steel, expensive motorcycle and electronic goods. When Union Finance Minister Nirmala Sitharaman will present the budget, it is possible that it will be confirmed. The media report quoted sources to cut tariffs.
Understand what is tariff
Actually, tariffs are tax imposed on products exported from other countries. The country controls the business among themselves only by decreasing it. The country that imports the products imposes tariffs so that the price of goods made in the country can be low compared to goods from outside. In order to avoid more tariffs than the fixed rate of tax, all countries talk with the World Trade Organization and decide a bound rate.
China, Brazil and India targeted Trump
Let me tell you that India imports 20 such items from America which charge more than 100 percent. The special thing is that the news of India’s tax cuts came at a time when US President Donald Trump has described India, China and Brazil as ‘tremendous tariff makers’. Trump has expressed displeasure over business balance many times before. Their strategy is to promote manufacturing in the US by increasing the tariff on goods coming from other countries.
Things will change with tariff
It is also worth noting that America is the largest trade partner in India. America is the only country of India’s big business partners, which does not have India’s trade deficit. That is, India sells its goods more in America and buys less. Now if Trump imposed a tariff against India under the US First Policy, then the situation will definitely change. How much Trump is excited about the US First Policy is also seen in his decisions.
America will answer
Donald Trump has made it clear on several occasions before that if a country imposes more tariffs on American goods, then America will also give the same answer. Now if India reduces tariffs on American products, it will be a matter of promoting trade relations between the two countries. Everyone’s eyes are on the upcoming budget, where there may be an official announcement about it.
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