“India is not a country that abuses customs duties, Donald Trump’s statements on customs duties are unfair”: GTRI | Business and Politics News

Republican presidential nominee former President Donald Trump points to a supporter as he leaves a campaign event at Nassau Coliseum, Wednesday, Sept. 18, 2024, in Uniondale, New York. (Photo: PTI)

2 min read Last updated: September 20, 2024 | 1:36 p.m. IST

Former US President Donald Trump’s accusations that India is an “abuser” of import tariffs are unfair, according to think tank GTRI. On Friday (September 20), GTRI pointed out that the US itself imposes high tariffs on several products to protect its domestic market.

High US tariffs on various products

Citing data from the World Trade Organization’s “World Tariff Profiles 2023” report, the GTRI highlighted the high tariffs the United States imposes on products such as dairy products (188%), fruits and vegetables (132%), grains and food preparations (193%), oilseeds, fats and oils (164%), and beverages and tobacco (150%). Other products, including coffee, tea, cocoa, and spices, face tariffs of 53%, while fish products and chemicals are taxed at 35% and 56%, respectively.

The GTRI also noted that while India maintains high tariffs on some items, these do not reflect the overall tariff situation. The think tank said, “Items subject to high tariffs do not represent the tariffs at which trade actually takes place for most items,” adding that average and trade-weighted tariffs are a better representation of India’s trade policy.

Donald Trump’s accusations about tariffs

Earlier this week, Trump called India “a country that is abusing the U.S.-India trade relationship,” criticizing the country for its high tariffs, but did not provide specific details. He made the remarks at a campaign event in Michigan, where he also praised Prime Minister Narendra Modi, whom he called a “fantastic” leader.

At the same ceremony, US presidential candidate Donald Trump announced that he would meet Prime Minister Modi over the weekend. The latter is scheduled to visit the United States from September 21 to 23 for the annual Quad summit.

In 2020, Trump had already called India the “tariff king.” India’s average tariff rate stands at 17%, which is higher than the US average of 3.3%. However, GTRI founder Ajay Srivastava noted that some countries, including the US, Japan and South Korea, impose high tariffs on certain products, with rates as high as 350%, 457% and 887%, respectively.

First published: September 20, 2024 | 1:15 p.m. IST