Possibility of being limited on domestic industries

The Government of India is considering cutting a fee (tariff) on certain types of steel, expensive motorcycles and electronic goods imported from the US. This decision can be formally declared on Saturday at the time of presenting the budget of Union Finance Minister Nirmala Sitharaman. Currently, India imposes a fee of more than 100 percent on 20 items coming from the United States.

US President’s statement

According to the report of NDTV Profit, the development has come to light at a time when US President Donald Trump described India, China and Brazil as “heavy tariffs”. President Trump recently told the Republican Party MPs in Florida that the US would pay charges on countries that “damage” the US. He said, “Countries like China, India and Brazil have been kept among those levying high fees. We are going to impose fees on countries that really want to harm us. ”

Trump’s ‘tariff strategy’

Trump said in his statement that the US will impose tariffs on countries that are against the interests of America. He insisted that if a country imposes 10 cents, $ 2 or 100 percent tax on the US, then America will also impose the same tariff. This statement has come in terms of preparation for Prime Minister Narendra Modi’s visit to America.

Plan to promote US production

Under Trump’s ‘US First’ policy, they want to promote the construction industry in the US by increasing tariffs on imported products. They believe that employment and industries in the US can be brought back to the US by increasing the fees on steel, semiconductors, medicines and other major items.

In addition, Trump’s ‘Tariff Arms Policy’ is in discussion due to recent controversies with Colombia, where the US administration decided to impose a 25 percent fee on Colombian products. Trump believes that his fee policy will make the US financially strong and will provide more benefits to the US in global trade.

In this situation, new layers of stress and cooperation may open between India’s possible fee deduction and America’s trading strategies.