Trump-Modi Meet
The mega MIGA, MAGA plans of India's Modi and US' Trump
Trump says India has more tariffs than others
Trump's 'golden rule' for imposing reciprocal tariffs
Currently, American goods face a weighted average tariff of 7.7% in India, while Indian exports to the US face only 2.8%, leading to a 4.9% difference.
The gap is 8.6% for chemicals and pharmaceuticals, 5.6% for plastics, 1.4% for textiles and clothing, 13.3% for diamonds, gold, and jewellery, 2.5% for iron, steel, and base metals, 5.3% for machinery and computers, 7.2% for electronics, and 23.1% for automobiles and auto components.
“The higher the tariff gap, the worse affected a sector will be,” said GTRI founder Ajay Srivastava.
India should propose a 'zero-for-zero' tariff strategy to the US for addressing America's proposed reciprocal tariff hikes, as it would be less harmful than negotiating a full bilateral trade agreement, it said.
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