Fri Sep 20 09:01:55 UTC 2024: ## India’s Tariffs: Not “Tariff King”, but Open to Trade, Says Report
A new report from the Global Trade Research Initiative (GTRI) refutes claims that India is a “very big abuser” of trade ties with the US and imposes excessively high import tariffs. While acknowledging India’s high duties on certain goods, the report argues that this practice is not unique and is employed by many countries to protect domestic industries.
The report states that while India’s average tariff rate of 17% is higher than the US’s 3.3%, it is comparable to other major economies like South Korea (13.4%) and China (7.5%). It further highlights that India has already removed tariffs on most imports from its free trade agreement partners, demonstrating its commitment to open trade.
The report criticizes former US President Donald Trump’s assertion that India is the “Tariff King,” arguing that his focus on individual high tariffs, like the 150% duty on US whiskey, ignores the broader context. The report points out that several countries, including Japan, Korea, and the US itself, levy high tariffs on certain products to protect specific industries.
The report acknowledges that India’s tariff structure requires reform but emphasizes that the country is open to free trade and has demonstrated this through its existing free trade agreements. It suggests that the US should consider a free trade agreement with India if it is serious about achieving zero tariffs, but notes that the US has been hesitant to reduce tariffs even within the Indo-Pacific Economic Framework.
The report concludes by advocating for a more nuanced understanding of trade policy and urging the US to engage constructively with India on tariff reform, while recognizing India’s commitment to open trade.
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