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During his address to Congress, US President Donald Trump took India to task for imposing tariffs of over 100 on American cars. In response, Trump ordered reciprocal tariffs to be imposed on India from April 2nd.
In fact as early as last month, Trump had already announced that he would soon impose reciprocal tariffs on countries like India and even when Indian Prime Minister Modi personally visited the US to plead for mercy, Trump remained unrelenting and even bluntly told Modi that the US would not let India off the hook on reciprocal tariffs.
Today, it seems that the so-called Indian tariffs of more than 100 on American cars is just an excuse for Trump to impose reciprocal tariffs on India.
In the face of this, Indian government sources have responded by saying that India is currently listening to the US , but is not backing down and is unlikely to make immediate concessions to the US demands.
Obviously, the Modi government is no pushover, or at least not ready to take back its policy of imposing tariffs on the United States anytime soon. Of course, then again, India’s toughness doesn’t stop there.
It’s worth noting that India’s Commerce and Industry Minister Goyal has already paid a visit to the U.S. in recent days and met with the new U.S. Trade Representative Greer.
During this visit, Goyal is known to have come to dissuade Trump from imposing reciprocal tariffs on India and to actively push for the signing of a trade agreement to boost bilateral trade.
Analyzing the situation from this perspective, whether India will eventually give in or not is still an open question as far as we can tell, but what is certain is that the exchanges around the issue of India’s auto tariffs are no small matter.
To know, India is the world’s third largest automobile market, its annual sales of about 4 million units, which if the tariffs are lowered to allow foreign cars to come in, that India’s local automobile companies how to compete with the
Trump prioritizes US interests and so does Modi, who has always prioritized India’s national interests. So for the sake of the indigenous automobile industry, at least in my opinion, Modi is not going to make a deal with the U.S. with auto tariffs. So Trump has kind of hit a tough nut to crack this time.
To be precise, the one who can make Trump suffer is probably Modi. It is said that the tip of the needle is the tip of the horse, and India is indeed the country that can make the United States taste the pain.
In short, in the matter of automobile tariffs, the United States and India’s differences in a short period of time, I am afraid it is irreconcilable.
Of course, if the United States insists on entangling with India, also want to levy more than 100 car tariffs on Indian cars, then in fact the United States will not have much to gain, after all, India’s cars in the U.S. market is really not very competitive.
On the contrary, this may also make the Modi government more angry, really want to touch with the United States, in the issue of auto tariffs tough to the end, the bad luck is still the United States.
Let’s not forget that apart from being the third largest auto market in the world, India is also one of the most protected markets in the world. For many years, 70 tariffs have been levied on imported cars under 40,000 U.S. dollars, while 100 tariffs have been levied on cars over 40,000 U.S. dollars.
Can American car companies carry this tariff pressure In the end, according to my guess, the most Trump can reap is a superficial concession from Modi, while the real concession is actually the United States.
Source Globe and Mail Observer Global Times
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