After US President Donald Trump came to power again, the fight for tariff war i.e. trade fee has intensified once again. According to the new US policy, it wants the tariff to be reduced to zero on all other items except agricultural products in trade between India and America. Officials of both countries are having mutual interaction in this matter. However, sources say that the US is not in the mood to give India any exemption from the reciperoke (such as Ko Tit) Tariff from April 2.

Automkers get temporary relief

The US has given one month tariff relief to the automakers who fulfill certain conditions. However, a 25% tariff on Canada and Mexico has been implemented from March 4. Some automakers have been given temporary discounts from this tariff. In a conversation with Canadian Prime Minister Justin Trudeau, Trump admitted that the situation had improved slightly, but it cannot be considered enough.

Tariff war is deepening

After the Trump administration implemented tariffs on Mexico, Canada and China, these countries also announced a fee on the US in retaliation. Now India can also come under this tariff war. The US plan is to eliminate tariffs on all goods in trade with India, but agricultural products will be excluded from this discount.

Impact on Indo-US trade

If this scheme of America is applicable, it can have both positive and negative effects for India:

Positive effects:

• Indian products will get an opportunity to sell at a low price in the US market.
• Indian industries can benefit from increase in exports.

Negative effects:

• The fees on Indian agricultural products will continue, which can cause damage to the farmers.
• America can seek some more business concessions from India in return.