India not abusing tariffs, Trump’s claims unfair, says GTRI

NEW DELHI: Former US President Donald Trump’s recent statements that India is “abusing” import tariffs are unfair as many countries, including the US, protect their domestic industries by imposing high tariffs on certain products, think tank GTRI said on Friday.

According to the WTO’s 2023 World Tariff Profiles, the United States also imposes high tariffs on products such as dairy products (188%), fruits and vegetables (132%), coffee, tea, cocoa and spices (53%), grains and food preparations (193%), oilseeds, fats and oils (164%), beverages and tobacco (150%), fish and fish products (35%), minerals and metals (187%), and chemicals (56%).

These figures demonstrate that the United States also protects specific products in its economy with high tariffs, the GTRI said in a report.

While India does impose high tariffs on some products, including wine and automobiles, the Global Trade Research Initiative (GTRI) says these figures do not represent the overall tariff picture. “Trump’s argument highlights the products with the highest tariffs while neglecting the average and trade-weighted tariffs that better represent India’s trade policy,” it said.

On September 17, Trump called India an “abuser” of import tariffs, a claim that echoes his October 2020 statement calling India the “tariff king.”

“While it is true that India imposes high tariffs on some products, Trump’s argument misses the essential context, which makes his accusations unfair,” said GTRI founder Ajay Srivastava, adding that many countries protect their domestic industries by imposing high tariffs on certain items.

India’s average tariff rate of 17% is higher than that of the United States (3.3%), but similar to other major economies such as South Korea (13.4%) and China (7.5%).

He also said India has demonstrated its openness to free trade by removing customs duties on imports from FTA (Free Trade Agreement) partners such as ASEAN (Association of Southeast Asian Nations), Japan and South Korea.