Since Donald Trump has held the U.S. presidential office, most of the biggest economies in the world have been scared of Trump’s pre-election promise to increase or put new tariffs on those who are exporting their goods to the U.S.
Sources told Reuters that Indian PM Narendra Modi’s 2-day visit starting from Wednesday will also have tariffs as the major point of discussion.
Recently, Trump has slapped 10% tariffs on Chinese imports and in response to this, China has also put duties on American energies.
To avoid a Trade war-like situation between India and America, PM Modi’s 2-day U.S. visit will play an important role.
India is also considering tariff cuts in many sectors, including electronics, medical, automobile, chemicals etc.
The reason behind India’s tariff cuts is that Donald Trump believes the U.S. should impose reciprocal tariffs equal to those imposed by other countries. It’s like a tit-for-tat situation now.
Trump’s top economic advisor, Kevin Hassett has told Reuters, India have high duties if they will go down, we will also.
This 2-day visit will decide the upcoming India-U.S. relations under Donald Trump presidency.