Under the Trump administration, US-India tensions have increased over each side’s tariff policies, a Congressional report has said, noting that the two sides have also held concerted negotiations to address these trade frictions.
The bipartisan Congressional Research Service (CRS), in its latest report, pointed out that India’s recent tariff hikes on cell phones and other telecommunication goods went up from zero per cent to 15-20 per cent in the last few years.
“Under the Trump administration, bilateral tensions increased over each side’s tariff policies. In general, India has relatively high average tariff rates, especially in agriculture. It can raise its applied rates to bound rates without violating its commitments under the WTO (World Trade Organization), causing uncertainty for US exporters,” said the CRS report.
The US and several other countries have requested to join various WTO dispute consultations against India, related to its technology tariffs, also questioning its compliance with WTO Information Technology Agreement.
After India lost its eligibility for the US Trade Preference Program, India imposed higher tariffs of 10 per cent to 25 per cent, affecting about $1.32 billion of US exports, the report stated. PTI
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