US recalibrates the tariff on India to 26%; China retaliates against us to move WTO

Copyright © HT Digital Streams Limit all rights reserved. Economy US recalibrates the tariff on India to 26%, China is shooting back with retaliation and WTO complaints a document from the White House updated on Friday shows that the Trump administration has revised reciprocal rates for at least 14 countries, including India. (AFP) Summary A White House document that was updated on Friday shows that the Trump administration has revised reciprocal rates for at least 14 countries, including India. New -Delhi: As the US recalibrates its reciprocal tariff policy after a wrong calculation of data, India will now face an additional 26% tariff in a series of commodities from April 9. This is a slight downward revision of the 27% increase announced on April 2 after the US administration corrected its trading deficit calculations. The change, although marginally, comes in a time of increasing concern about the possible global outage of Tit-for-Tat trading measures. The 26% additional rate applies to the current rates for basic customs duty (BCD) to different commodities. The reciprocal tariff movement is part of Washington’s broader strategy to enforce a baseline tariff of 10% on imports from 57 countries, including several important Asian partners. Also read: Trump’s rates have McKinley turned in his grave a document from the White House that was updated on Friday shows that the Trump administration has revised reciprocal rates for at least 14 countries, including India. The rate of India was 26% during President Donald Trump’s public announcement on April 2 in the White House Rose Garden. However, the official attachment-I listed the rate as 27%. With the review, India will face the indicated 26% additional duty. President Trump, while called Indian Prime Minister Narendra Modi, accused India of not treating the US right. The reciprocal rate, which is part of its protectionist economic policy, is aimed at increasing domestic manufacturing and addressing trade deficits. The US trade deficit with India was $ 35.31 billion in 2023-24. Several other countries have seen similar contradictions in the tariff rates. For example, the tariff rate of South Korea was first announced at 25%, and then listed in the Schedule as 26%before it returned to 25%. Other countries experiencing recalibrated rates include Botswana, Cameroon, Malawi, Nicaragua, Norway, Pakistan, the Philippines, Serbia, South Africa, Thailand, Vanuatu and the Falkland Islands. Also read: Trump’s rates to shake off the export of engineering and electronic goods, China answered powerfully. It announced a 34% tariff on all US imports from April 10 – a mirror reaction on the US rate imposed on Chinese goods. Beijing also said it would take the matter to the World Trade Organization (WTO) and export control on several rare earth elements that are critical to the production of medical devices and electronics. However, India’s guard-and-watch approach said that Indian government officials carefully monitor trade-related developments and assess the developing situation. ‘The US -China trade dynamics differ much from our comparison to Washington. India has built up a robust manufacturing ecosystem and is increasingly positioning itself as a global supplier of goods, ‘said an official who did not want to be mentioned. Inquiries by e -mail to the Ministry of Trade on this matter did not receive an immediate answer. China’s rapid retaliation has troubled global markets. The S&P 500 in the US fell 4.8% on Thursday at its worst one-day performance since the Covid pandemic. The ripple effect is felt worldwide, with Nikkei of Tokyo having 2.8% lower and European indices also have a hit. Frankfurt was dropped by 5%by noon on Friday, Paris dropped more than 4%, and London fell by almost 3.8%. Japan’s Prime Minister Shigeru Ishiba called the tariff estate a ‘national crisis’, which reflects the increasing discomfort among the most important economies. At home, the Indian trade experts approach the situation carefully. While China and the US are locked in an increasingly hostile tariff war, India is trying not to be drawn. Also read: Trump’s rates bring Indian shrimp and Basmati to an analyst of cooking trade Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), warned against India which is too narrowly in line with either side. “With both powers clapping 34% rates – increasing the total US rates on Chinese goods to 54% – is expected to create a good US soybean and wheat, Commodities China said strongly from the US,” Srivastava said. The GTRI founder further added that any Indian move to enable the import of wheat for ethanol mixing or to lower rates on US agricultural goods can be considered by China. US Trade Representative Report The report of the US Trade Representative (UNDR), released on March 31, noted that India prohibits ethanol imports for fuel use and requiring a directorate-general of foreign trade (DGFT) license for non-fuel imports. “This applies to more products. If you do, it can cause a setback from China, including a possible stop in critical exports such as electronics and machinery, as seen in recent months,” said GTRI Srivastava. Also read: Indian stocks, bonds, currencies show resilience amid Trump’s tariff reinforcement “In a time when two world giants are closed in an economic performance, India should prioritize its interests and avoid being dragged into a conflict, and not making it. Neutrality is not just diplomacy – it is strategy. Important takeaways The US has recalibrated its tariff policy and will impose an additional 26% tariff on a series of Indian commodities, with effect from April 9. In response to US tariff increases, China announced a 34% tariff on all US imports, from April 10. Beijing intends to drag the US to the World Trade Organization (WTO) across the tariff issue and set up export control for rare earth elements that are essential for medical devices and electronics. China’s rapid retaliation has troubled global markets, leading to significant declines in large stock indices in the US, Japan and Europe. Indian government officials monitor the developments, but emphasize that India’s trade dynamics with the US differ from the US China equation. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Trade War #Tariff Hike #Donald Trump Mint Special