DNA TV Show: How Donald Trump’s tariffs on India cause concerns in US

General TRENDING NOW

The effect of Donald Trump’s tariff war with India is now visible in the US as well. Trump’s allies are saying that spoiling relations with India can prove to be costly for US. Trump’s former ally and senior Republican Party leader, Nikki Haley, has said that Trump believes that India should not buy oil from Russia, but he has given 90 days to China, which buys the most oil from America’s traditional opponents, Russia and Iran. By taking such steps, we can spoil our close relations with India.

Not only Nikki Haley, but a large section in US is now becoming vocal about Trump’s India policy, especially the threats of increasing tariffs on India in the US industry, has increased the level of apprehension. The US Chamber of Commerce has said in its official statement that it has become necessary to find a proper solution to the tariff issue with India; otherwise, the deteriorating trade relations with India can have a negative impact on the US economy.

Michael Feroli, the chief advisor of the famous investment institution JP Morgan, has warned that if Trump increases the tariff, the inflation rate in US can increase by 0.3 per cent, and US’s National Retail Foundation says that due to higher tariffs on Indian products, the prices will increase, which will directly affect US consumers. From economic experts to leaders of US, everyone is giving the same advice to Trump that increasing tariffs on India can prove to be like shooting oneself in the foot. 

The State Bank of India (SBI) has also released a report on how the increase in tariffs can affect US citizens. This report says that increasing tariffs on India can lead to an increase in US inflation. In the US, electronics, automobile and consumer-related sectors are completely dependent on imports, due to which inflation in these sectors will increase rapidly, which will put an additional burden of Rs 2.90 lakh per year on an average family in the US. Low-income families will have to bear an additional burden of approximately Rs 1.13 lakh, while rich families may have to spend an additional Rs 4.37 lakh. 

Meanwhile, Trump on Wednesday issued an executive order hitting India with an additional 25 per cent tariff on Indian goods, citing its continuing procurement of Russian crude oil. The additional tariff, to come into effect after 21 days, will increase the duties on some Indian goods to 50 per cent.

Reacting to the move, India called it ‘unfair, unjustified and unreasonable. Defending India’s energy ties with Russia, the Ministry of External Affairs (MEA) said the imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of the country.

Find your daily dose of All Latest News including Sports News, Entertainment News, Lifestyle News, explainers & more. Stay updated, Stay informed- Follow DNA on WhatsApp.