Washington, Jun 11 American President Donald Trump accused India of charging 100 per cent tariff on some of he US goods, he further added that other top economies are following the same.He threatened to cut trade ties with countries who are robbing America.
Trump remarks came in Canada’s Quebec City where he was attending the G7 summit that ended in farce after he abruptly rejected the text of a consensus statement and bitterly insulted the host. He said that America has become the piggy bank and everybody is robbing, while he was addressing a press conference on Saturday.
Trump also made a reference to India, indicating that his grievances on tariffs were not restricted to the developed economies alone. He said this is not G-7 alone a country like India who charges 100 per cent and American does not charge anything and we cannot do that.He said we are talking to many countries in this regards. He quoted the Harley Davidson motorcycle where India is imposing high import duty and he threatened to increase the import tariffs on thousand and thousands of Indian motorcycles to the US.
Donald Trump remarks came at a time when the India-US relationship has been on a positive trajectory for years. For example, bilateral trade expanded by USD 11 billion last year to more than USD 125 billion, a new record.
Trump called for a tariff-free G-7.
“That’s the way it should be. No tariffs, no barriers. That’s the way it should be,” he said. “And no subsidies. I even said no tariffs,” he said.
Trump, who is pushing his ‘America First’ policy, said his ultimate goal was the elimination of all trade duties.
“Ultimately that’s what you want,” he said. “You want a tariff free. You want no barriers. And you want no subsidies. Because you have some cases where countries are subsidizing industries and that’s not fair.”
U.S.-India Bilateral Trade and Investment
In 2016, India GDP was an estimated $2.3 trillion (current market exchange rates); real GDP was up by an estimated 7.6%; and the population was 1.3 billion. (Source: IMF)
U.S. goods and services trade with India totaled an estimated $114.8 billion in 2016. Exports were $42.0 billion; imports were $72.8 billion. The U.S. goods and services trade deficit with India was $30.8 billion in 2016.
India is currently our 9th largest goods trading partner with $67.7 billion in total (two way) goods trade during 2016. Goods exports totaled $21.7 billion; goods imports totaled $46.0 billion. The U.S. goods trade deficit with India was $24.3 billion in 2016.
Trade in services with India (exports and imports) totaled an estimated $47.2 billion in 2016. Services exports were $20.3 billion; services imports were $26.8 billion. The U.S. services trade deficit with India was $6.5 billion in 2016.
According to the Department of Commerce, U.S. exports of Goods and Services to India supported an estimated 197 thousand jobs in 2015 (latest data available) (82 thousand supported by goods exports and 116 thousand supported by services exports).
- The U.S. goods trade deficit with India was $24.3 billion in 2016, a 4.2% increase ($970 million) over 2015.
- The United States has a services trade deficit of an estimated $6.5 billion with India in 2016, up 1.5% from 2015.
On the other hand China and the US have averted a trade war by reaching an agreement last month under which Beijing has agreed to “significantly increase” its purchases of American goods and services to reduce USD 375 billion trade deficit with Washington.
The top trading partners of the US are upset over the recent imposition of a 25 per cent tariff on import of steel and 15 per cent on aluminium.
The Trump said that the best way to solve trade disputes was by lowering tariff and non-tariff barriers by countries and allowing the free market to operate.