The United States has recently put new taxes, called tariffs, on goods imported from India. This has caused some friction between the two countries. The US has now put a 50% tariff on certain Indian goods. The first 25% started on August 7, and another 25% is expected to begin on August 27. The US says these extra taxes are a punishment for India doing business with Russia.
What does this mean for the two countries?
America's Side
Internal government papers show that President Donald Trump used these tariffs to help specific companies, not just for national security reasons. He has also stated that he will not talk about new trade deals with India until this tariff issue is fixed.
India's Side
India's government is not taking this lightly. They are thinking about adding their own tariffs to some American goods as a comeback. Prime Minister Narendra Modi and former Vice-President M. Venkaiah Naidu have both made it clear that India will not give up on its national interests or the well-being of its farmers. A well-known politician, Sharad Pawar, has asked everyone in the country to support the government during these "pressure tactics."
What are the experts saying?
Many experts and former US officials, including John Bolton and Kurt Campbell, think these tariffs are a bad idea. They worry that this could damage America's important relationship with India.
Moody's, a big financial company, believes that these tariffs could slow down India's economic growth. Some Indian businesses, like those that export shrimp, are already feeling the heat and are asking the government for help.
0 Comments