India Us Tariffs / PM Modi found the solution to the 'Trump card', will forgive US Rs 2 lakh crore!

India Us Tariffs: The Indian government has understood that US President Donald Trump wants to trap all the countries of the world including India in a tariff maze, and getting out of it is the only option. Even if India has to pay a price for this, it is necessary, because if this step is not taken, then it will be difficult for any country to bear the loss caused by Trump's tariff. Prime Minister Narendra Modi and his government have understood this fact very well. This is the reason why the government is working towards waiving the tariff on American goods.

Trump card solution

India has found a solution to the US President's 'trump card'. For this, the government is planning to give a discount of 23 billion dollars (about 2 lakh crore rupees) on the import of American goods. The reason for this is that India wants to maintain the 66 billion dollars of exports coming from America. If this step is not taken, the impact of American tariffs can be serious on Indian trade.

Plan to remove tariffs on $23 billion

In the first phase of the trade deal between India and the US, India is set to cut tariffs on US imports by more than $23 billion. This will be the biggest cut in the last few years, aimed at reducing the impact of reciprocal tariffs. India has adopted this strategy to avoid tariffs imposed by the US.

According to a Reuters report, India estimated that the reciprocal tariffs imposed by Trump could lead to an 87% drop in Indian exports to the US. Therefore, India has decided to reduce tariffs on 55% of its US imports.

India vs US: Comparative study of tariffs

According to the World Trade Organization (WTO), the US has an average tariff of 2.2%, while India has an average tariff of 12%. India's trade deficit with the US is $45.6 billion. During Prime Minister Narendra Modi's US visit in February, the two countries agreed to finalise the trade deal and begin negotiations to resolve tariff issues.

India's strategy

India is seeking a deal before reciprocal tariffs are announced. US Trade Representative Brendan Lynch will lead the talks. The Indian government has made it clear that tariff cuts on US imports will depend on getting reciprocal tax relief. Indian officials are also discussing broad tariff reform and product-specific negotiations on the issue.

Impact of US tariffs and possible solutions

Although PM Modi was the first to congratulate Trump on his election win, the US President has criticised India as a "tariff king". US tariffs could lead to a 6% to 10% increase in Indian exports, impacting key industries. Pharmaceuticals and automobile sectors could be particularly impacted. India is looking at alternative trade partners such as Indonesia, Israel and Vietnam to address this problem.

India's policy

India plans to bring about a clear change in its tariff policy. High tariffs on meat, corn, wheat and dairy products have been retained, but tariffs on almonds, pistachios, oatmeal and quinoa are likely to be cut. Apart from this, India is also exploring the possibility of phased reduction in automobile tariffs.