Vikrant Shekhawat : Dec 18, 2024, 10:35 AM
India-America Relations: Donald Trump, who is soon to be sworn in as the President of America, has once again taken a tough stand on tariffs. He has threatened to impose "reciprocal tax" on India. Trump says that as much tax India imposes on American products, America will also impose the same tax on Indian products. Trump has long been opposing India's imposition of "high tariffs" on some American products and is now talking about retaliating on this issue.Trump's strong statementWhile talking to the media, Trump said, "If they impose high tariffs on us, we will also impose them. They impose taxes on us on almost everything, but we do not impose them. If India imposes 100 percent tax, will we keep watching silently? Absolutely not." Naming India and Brazil, he said that these countries impose excessive taxes on American products. Trump's statement shows that his government is considering taking similar steps under "reciprocal tariffs".Commerce Secretary supports TrumpTrump's strategy has also been supported by his future Commerce Secretary, Howard Lutnick. Lutnick said that "reciprocity will be one of the priorities of the Trump administration. You will get what you treat." Lutnick made it clear that strict action will be taken against countries that adopt unfair trade policies with the US.Targeted BRICS as wellThis is not the first time that Trump has shown a tough stand on international trade. Earlier, he had also threatened to impose 100 percent tariff on BRICS countries. Trump says that BRICS member countries (Brazil, Russia, India, China, and South Africa) are looking for an alternative to the US dollar and are planning to create their own currency. He called it a challenge for the US economy and warned against such steps.Impact on US-India trade relationsThis statement of Donald Trump may affect the trade relations between the US and India. Both countries have been strengthening their economies through trade cooperation for a long time. However, this tough stand of Trump can increase trade tensions.What is Trump's strategy?Trump's policy is based on "America First". He believes that America should get "fair" treatment in the trade sector. The threat of increasing tariffs on countries like India is part of his strategy.ConclusionThis statement of Donald Trump can give rise to new disputes in international trade. While on the one hand this statement can excite Trump's supporters, on the other hand it can harm India-US trade relations. Now it remains to be seen what effect this tough stand of Trump has on India and other countries.