It may be noted that US and India have been on different tangents with regards to trade ties, blaming each other for imposing unfair trade tariffs. The latest trade spat between India and US has been ongoing for months, soon after Trump had announced a steep tariff hike for commodities such as aluminium and steel.
US President Donald Trump |Photo Credit: BCCL
Quebec City: US President Donald Trump has lashed out at several countries, charging them of “robbing” the United States of America on the trade front. Issuing a statement at the G7 Summit, he threatened to sever any trade ties with countries that are allegedly disrupting the US economy and went on promoting his ‘America first’ agenda at the G7 Summit in Canada. The US President not only sent out a stern message to the G7 countries but also to close strategic ally India.
It may be noted that US and India have been on different tangents with regards to trade ties, blaming each other for imposing unfair trade tariffs. The latest trade spat between India and US has been ongoing for months, soon after Trump had announced a steep tariff hike for commodities such as aluminium and steel. India has been protesting vehemently against the move but the scenario has not changed even after taking the matter to the World Trade Organisation (WTO). On the other hand, the US has been pinning the blame on India over trade subsidies that provide an unfair advantage to Indian businessmen and traders.
At the sidelines of the summit, which he refused to endorse, Trump made it clear that all these practices have to be rectified if countries want to keep healthy trade ties with the biggest economy in the world. Trump’s recent statement is a threat to trade ties between US and India. He said, “This isn’t just G7. I mean, we have India, where some of the tariffs are 100% … And we charge nothing,” he said. Expressing his frustration, Trump said, ” Can’t do that. We are talking to many countries, we are talking to all countries.”
“And it’s going to stop. Or we’ll stop trading with them. And that’s a very profitable answer.” It should be noted that Trump did not even write a consensus statement for the G7 or Group of Seven summit, insulting all the other member countries and the Canadian host. The bitter end to the G7 has again revived fears of a full-scale trade war, with Trump strongly reiterating his ‘America First’ agenda.
While making the abovementioned statement, Trump explained that unfair practices ultimately hurt the US farmers. Before making a hasty exit from the summit at La Malbaie, Quebec, the US President said that the US is “like a piggy bank that everybody is robbing” and that he will put an end to it.
Trump, who has been increasing import duty tariffs, told that the move is to protect US industry and workers and hinted to other G7 leaders to stop unfair trade tariffs and subsidies.
Earlier, the US president has lashed out at India over high tariffs on Harley-Davidson motorcycles. While he called PM Narendra Modi a “beautiful man”, he suggested that the US was bleeding in terms of Indian customs duties. That was the first sign of trade strains between India and the US earlier this year. However, the trade difference has now spiralled into a cold spot and efforts are being made to iron out a middle ground.