Trump Slams India Tariffs On US Imports As ‘No Longer Acceptable’

India’s tariffs on a section of U.S imports have evoked a strong reaction from U.S president Donald Trump.

In a tweet, the American president said India’s long field day of putting Tariffs on American products is “no longer acceptable”

India’s higher tariffs in the U.S . products were in response to the U.S action of removing India’s duty-free access to U.S markets under a beneficial status tag.

The India news on higher tariff for some U.S imports included those on Harley-Davidson motorcycles and American apples, among others.

In June, Trump took exception to India levying 50 percent duty on Harley-Davidson bikes calling it “unacceptable.”

India was hurt by the action of Trump administration in early June when it removed India’s preferential status that allowed the duty-free entry of billions of dollars worth Indian imports into the U.S. markets.

In response, India raised duties on 29 U.S imported goods.

India’s loss of preferential status

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said lifting the preferential status.

Meanwhile, a U.S trade delegation is expected to visit India soon to find ways to resolve the trade tensions, according to official sources.

India’s trade minister Piyush Goyal may also travel to Washington as part of bilateral engagement to solve the differences between the two sides on tariffs.

According to Raveesh Kumar, a spokesperson in the Ministry of External Affairs, “the broad trajectory of Indo-US ties remained positive.”

Kumar added that the discussion between Prime Minister Modi and US President Donald Trump in Osaka was open and productive. However, differences are natural in any multi-dimensional relationship.

Meanwhile, Trump’s effort to escalate tariff rhetoric on India surprised many analysts. Chad Brown, a fellow at the Peterson Institute and co-host of the Trade Talks said he is skeptical of the latest escalation as it can be an excuse to impose more tariffs.

According to Brown, since January 2018, Trump increased tariffs on 14 percent of India’s exports to the U.S.

In June India responded with tariffs on 6 percent of the U.S. imports including $600 million of California almonds.

Brown also said Trump must be planning a section 301 case against India and more tariffs for Indian goods might be in the pipeline. The trade skirmish with India comes in the middle of U. S parleys for a trade deal with China.

Trump met China President Xi Jinping during the G 20 summit in Japan’s Osaka and agreed to resume the stalled trade talks. They also decided to refrain from additional tariffs on U.S. and Chinese products.

India has not reacted to Trump’s latest tweet.