- India has imposed retaliatory tariffs in response to Trump’s steel and aluminum import tariffs.
- The tariffs come as the US-China trade deal shows signs of progress and resets global trade dynamics.
- India informed the WTO that the Trump tariffs affect $7.6 billion worth of its steel and aluminum exports to the US.
India has imposed retaliatory tariffs in response to Trump tariffs, just as the US-China trade deal gains momentum. This move follows months of friction after the United States imposed a 25% duty on steel and aluminum imports. With rising tensions, India’s trade stance signals deeper disagreements against the backdrop of shifting global alliances.
Trump Tariffs Prompt India’s Trade Response
India informed the WTO that Trump tariffs would affect $7.6 billion worth of its steel and aluminum products sent to the US. India has retaliated by including several US goods for additional duties as a countermeasure on the grounds of unfair trade treatment. These steps have been taken in preparation for the country amid the delays in the US-India Bilateral Trade Agreement talks.
The tariff announcement happens days before the seventh of July, when the trade agreement is to be finalized. Soon after, the 90-day grace period for Indian goods entering the US will end. This timing increases pressure on both sides while negotiations remain unresolved.
India’s newest moves aim at American goods such as walnuts, apples, and chemicals. The products attract more duties as part of India’s formal complaint against Trump tariffs. While the trade deal remains unclear, India is trying to support domestic interests and exports.
US-China Trade Reset Undermines ‘China Plus One’ Push
The US has eased its trade stance with China, even after increasing Trump tariffs by 145% in April. After the agreement was publicized, the president of the US announced a new reset in the US-China trade relationship. The move sidelines India, defeating its strength of being one of the countries under the “China Plus One” policy.
With new US-China agreements coming in, the uncertainty over shifting operations to India may haunt global manufacturers. The relaxation of Trump tariffs on China contrasts with the US posture toward India, darkening India’s prospects of attracting firms that want to diversify their supply lines.
India now stands by and observes from the sidelines while Washington tears up and mends fences with a newly post-COVID China, Beijing, and London. India’s future trade prospects are in question because of its current trade tensions with the US. With no equal treatment, India can reinvent its wider trade policies.
Bitcoin jumped by 2% to $103,500 after falling early as the global market responded to trade news and tariff actions. In the face of Trump tariff uncertainty and world trade tensions, Ethereum roared ahead 9%, at the top of altcoin gains. Large crypto coins, such as XRP, Solana, Dogecoin, and Cardano, are up by 4% to 10% daily. While China and America heat up their economic friction in international trading, the strength of Bitcoin exemplifies the momentum of the market.
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