The US considers India “the worst” in terms of tariffs on American products; G7 meeting discusses trade disputes

A top American Senator Lindsay Graham claimed on Sunday, ahead of U.S. President Donald Trump’s meeting with PM Narendra Modi on the sidelines of the G-7 Summit in France that India is “the worst” in terms of high tariffs on American products. He proposed that either the U.S. should increase tariffs on Indian products, or both the countries should go to zero.

“They will look for solutions on the trade front. The U.S. is looking to India to reduce tariffs and open its markets,” a senior administration official said, ahead of the meeting early this week.

In February 2018, India slashed the customs duty on Harley-Davidson to 50% after Trump called it “unfair” and threatened to increase the tariff on Indian bikes.

However the government on June 21 2018 decided to impose retaliatory duties against U.S. decision to impose 25% and 10% customs duties on imported steel and aluminium products in March.

As a major exporter of these items to the U.S., the move had revenue implication of about US$240 million on domestic steel and aluminium products. India also dragged the U.S. to the WTO over the imposition of import duties on steel and aluminium.

India exports US$1.5 billion worth of steel and aluminium products to the U.S. every year. India’s exports to the U.S. in 2017-18 stood at US$47.9 billion, while imports stood at US$26.7 billion showing a trade surplus. The U.S. and China have been locked in a continuous trade war March last year affecting the trade dynamics of both the countries. It is yet to be seen how the discussions during the G-7 Summit take shape in the coming months.