Trump Tariff: America imposed 50 percent tariff on India in the month of August. Of these, 25 percent tariff was imposed as a penalty for purchasing crude oil from Russia. This tariff of US President Donald Trump also affected industries ranging from textile to leather, jewelery and seafood. However, Trump has said that he will reduce the import duty of more than 200 agricultural and farm products by November. Due to this, the expectations of Indian exports have increased again.
Which products did Trump give discount on?
- tea and coffee
- Spices like turmeric, ginger, cinnamon, cardamom, black pepper, cloves and cumin.
- Cashews and many other types of dry fruits or tree nuts.
- Processed food, all types of seasonal fruits, fruit pulp, fruit juice etc.
Talks on trade deal between the two also
Federation of Indian Export Organization (FIEO) says that the exemption in import duty can benefit Indian exports worth about $ 2.5-3 billion. This step can also be seen as a positive signal in the ongoing talks regarding trade deal between India and America. However, at present there is no exemption of any kind on prawns, basmati rice, gems and jewellery, clothes, these will continue to attract full tariff. Trump has not included many fresh and sour fruits and bananas in this list, hence the scope of exemption seems limited to many experts.
Why did Trump take this decision?
Trump took the decision to withdraw tariffs on selected goods because due to tariffs, many things had become very expensive in the American markets. Due to this, the general public there is facing problems, they have to spend more than before to buy food items. In such a situation, a need was felt to keep things affordable, due to which the idea of making imports cheaper was thought of. This is also good news for Indian exporters, who will get a chance to sell their goods again in a big market like America.
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