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September 23, 2020

India has been hurting the US a lot in trade: Donald Trump

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US President Donald Trump has complained about high tariffs just before his visit to India. He said in a rally in Colorado on Thursday – India has been hurting the US a lot in trade for the last few years through a high tariff rate. He told his supporters that I like Prime Minister Modi and there will be the talk of business between us on this visit. However, he made it clear that he would put America first in negotiations between the two countries. Trump is coming on a two-day India tour on 24 February. He will first reach Ahmedabad. After this, he has programs in Agra and Delhi. He will be accompanied by wife Melania, daughter Ivanka and son-in-law Jared Kushner.


Reports about Trump’s visit claimed that the two countries are moving towards a major trade deal before a major trade deal between India and the US. The US President also reiterated at the event in Las Vegas that I am going to India and there is a possibility of a big deal between the two countries. However, he pointed out that if the deal did not go well, negotiations could get a break. So, we will move forward on this after the presidential election.

Trade between the two countries was $ 142.6 billion last year

The service sector has a major contribution to bilateral trade between the two countries. The trade between the two countries in the US Goods and Services sector accounts for 3% of America’s total world trade. In 2018, $ 142.6 billion was traded between the US and India in goods and services. India exported $ 83.9 billion to the United States and imported $ 58.7 billion. According to the US Commerce Department, exports of goods and services to India generate 1.97 lakh jobs in the US. The US is the second-largest trading partner of India after China.

Major causes of trade tension between India and America

Removal from GSP: Under the GSP program, the US provides trade waivers to 129 developing countries. In 2018, India was the first among the countries to benefit from this program.

Visa issue: The United States has clamped down on granting H1-B visas. The annual income for qualifications has also been increased, with visa fees doubling. This has reduced opportunities for Indians in America.

Data localization: In the digital space, India is constantly under pressure from foreign IT companies for data localization. All the big companies including Google, Amazon, Facebook, Flipkart are opposing this move of India.

Relations between the two countries soured after increasing custom duty

Last year, after the increase in customs duty on certain types of steel and aluminum products in the US, there was a souring relationship between India and the US. Apart from this, the US also excluded India from the Generalized System of Preferences (GSP) program. Under this program, the US allows exports to developing countries. India exported about $ 600 million worth of products to the US under this program.

Tarley likely to be lower on Harley Davidson motorcycle

Following this move by the US, India increased tariffs on 28 products including almonds, walnuts, apples, and steel in June 2019. This increased duty on walnut by 120%, on chickpea gram and some pulses by 70%. Trump also raised the issue of higher tariffs on Harley Davidson motorbikes. America has objected to the duty imposed on IT products. The US has reservations about the cost control of medical equipment. American companies are constantly complaining about data localization.

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