US-India Trade Update: Tension in US-India trade! America itself at a loss by Trump’s policies?
- The imposition of 50 percent additional tax has created tension in both countries
- India-US relations are likely to be negatively affected
- Will India lean towards Russia-China due to Trump policies?
US-India Trade Update: A few days ago the US President on Indian products Donald Trump had imposed an additional tax of 50%. This additional tax has affected the trade relations between the two countries and this has created tension between the two countries. The impact of Donald Trump’s decision is not only on India’s economy but also fueling the growing opposition in America. Lawmakers say that the US government’s tough decision could have a long-term negative impact on India-US relations.
Relationships that have been strengthened over decades of cooperation, security and economic partnership are likely to be broken by this additional tax. Also, increasing trade barriers have reduced the profits of US companies and increased import costs have put an additional burden on consumers. Indian-American Congresswoman Amy Bera raised this issue in the US Congress by criticizing several policies of the Trump administration. In this he criticized the additional fee of $100,000 on H1B visas as excessive and impractical.
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Amy Bera said the high tariffs would reduce the ability of American companies to recruit foreigners to their industries and hurt the US, given the important role Indian businessmen play in Silicon Valley and the technology industry. He also pointed out that these additional costs hurt small and medium-sized American companies the most, which are already facing global competition.
High tariffs and strict visa policies are not only affecting the economic issue but it is affecting many things in both the countries. Cultural relations are also likely to be damaged in this. Mutual cooperation, technical exchange and education-trade relations are the biggest strengths of India-US. However, due to Trump’s decision, these relations may deteriorate. Recently, of India Prime Minister Narendra Modi Referring to his meetings with Russian President Vladimir Putin and Chinese President Xi Jinping, he said that this tough decision by the US is establishing relations with the rest of the superpowers.
This decision of the American government has affected India as well. As such, it is affecting American businesses and consumers alike. Higher import costs are driving up production costs for American companies, which in turn increases prices and raises inflation. This situation is dangerous for US financial stability and the health of markets.
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According to information received, opposition to India in the US has been increasing in recent times and the tense trade environment between India and the US and strict visa policies are further strengthening these sentiments. Indian-Americans play an important role in the American economy, education, technology. Millions of people of Indian origin play an important role in America’s development through taxes, employment and investment. Therefore, such decisions are against the US’s own interest.
Currently, negotiations are underway for a trade agreement between India and the US. The deal was broken once before, but negotiations have now resumed. The geopolitical complexity of Indo-US relations is also increasing. If the tariff war continues, India may gradually become more dependent on countries like Russia and the Middle East for energy and trade, which could weaken the US’s strategic position in the Asia-Pacific region.
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