US President Donald Trump has threatened India and China if tax on American goods is not reduced, then they will impose similar taxes. Trump said that the US imposes very little tax on imported goods from other countries but other countries impose more taxes on our goods. Trump said in a threatening tone that if other countries do not reduce the tax, then we will also pay counter money.
Many times the trump has raised the issue
In the past, Trump has raised the issue of charging nearly 50 percent of the expensive motorcycle Harley Davidson, imported from the US several times. He repeatedly insisted that the US charges zero duty on motorcycles imported from India. Trump said that we will retire at some point or the other time. If China imposes a 25 percent tax on us or 75 percent of India charges us, and we do not charge them. They have imposed a 25 percent on steel and 10 percent import duty on aluminum.
Trump said that if he imposes 50 percent or 75 percent or 25 percent tax, then we will do the same. It replies and answers it. In this way, if they charge 50 percent of us, then we will also charge 50 percent of them. He said that in the first year of his administration, the forum of counter-response was ready. Trump said that other countries do not treat fair trade with American companies.
We apply only on 2.2% of the Chinese cars
Referring to Tesla’s chief Alan Musk tweeting, he said that China imposes a 25 percent duty on American cars, whereas on imported Chinese cars, we charge only 2.5 percent. Trump said that the counter-tax program will ensure the fair trade deal for the US.
Tariff duty on steel and aluminum
Prior to this, US President Donald Trump has put tariff duty on steel and aluminum, bypassing the fears of the whole world trade war. They have signed the announcement on Thursday in this regard. According to the announcement, he has imposed a duty of 25% on steel imports and 10% duty on aluminum import. These import tariffs will be effective within 15 days.
Increased threat of trade war
After Trump’s decision, the atmosphere of anxiety spread across the world. This has increased the fear of trade war. China has strongly opposed it. China has already said that trade war is never beneficial. France has also expressed resentment about it. It is feared that the trade war environment could arise.
What’s the impact on India?
It will not have much effect on India. Indeed, US share in India’s total exports is just 2 per cent. However, after this decision, the supply of steel in India can be increased. Experts have expressed concern that the steel which was going to America before sending such a trump could send it to India. In such a situation, India has to look into anti-dumping duty.
What is the trade war
Trade warfare is a result of the fight of protectionism between the two countries. This situation arises when a country increases tariff duty on goods coming from a country. In response to this, the country facing the front also increases duty. At any given time, any country in the world raises this step when it takes steps to protect its domestic industry and companies. The effect of this trade war appears gradually to the whole world. Because of this, an environment of concern is created at the global level.