'India not abuser, Donald Trump's claims about import duties unfair': GTRI

Think tank GTRI has criticised Donald Trump's claim that India is an "abuser" of import tariffs, noting singling out high tariff items do not present the real trade picture

The claims made by former US President Donald Trump, referring to India as “an abuser” of import tariffs, are unfair, according to the think tank GTRI. On Friday (September 20), GTRI pointed out that the US itself imposes high duties on several goods to safeguard its domestic markets.

High US tariffs on various goods

Citing data from the World Trade Organisation's ‘World Tariff Profiles 2023’, GTRI highlighted the significant tariffs the US places on products such as dairy (188 per cent), fruits and vegetables (132 per cent), cereals and food preparations (193 per cent), oilseeds, fats, and oils (164 per cent), and beverages and tobacco (150 per cent). Other goods, including coffee, tea, cocoa, and spices, face tariffs of 53 per cent, while fish products and chemicals are taxed at 35 per cent and 56 per cent, respectively.

GTRI further noted that while India does maintain high tariffs on certain items, these do not reflect the overall tariff situation. The think tank stated, "High tariff items do not represent the tariffs at which actual trade happens for most items," adding that average and trade-weighted tariffs are a better representation of India’s trade policy.

Donald Trump’s tariff accusations

Earlier this week, Trump labelled India as “an abuser” of US-India trade relations, criticising the country for its high tariffs but offering no specific details. He made these remarks during an election campaign event in Michigan, where he also praised Prime Minister Narendra Modi as a “fantastic” leader.

At the same event, Trump, who is running in the US presidential elections, announced that he would meet PM Modi during the weekend. PM Modi is scheduled to visit the US from 21 to 23 September for the annual Quad summit.

In 2020, Trump had previously called India the “Tariff King”. India’s average duty rate stands at 17 per cent, which is higher than the US's average rate of 3.3 per cent. However, GTRI founder Ajay Srivastava noted that some countries, including the US, Japan, and South Korea, impose steep tariffs on certain goods, with rates as high as 350 per cent, 457 per cent, and 887 per cent, respectively.