US Trade Investigation: In America, the Donald Trump administration has started a new trade investigation into industrial production abroad. This investigation started on Wednesday. According to reports, this step was taken when the US Supreme Court canceled the old import duty imposed by Trump citing economic emergency. In this new investigation, 16 big economies including India have been included.

Making the official announcement, US Trade Representative Jameson Grier said that the government will start an investigation under Section 301 of the Trade Act of 1974. After this investigation, America can impose new import tax on goods coming from these countries.

Which countries were included

Many big trading partner countries of America have been included in this investigation. These include China, European Union, Mexico, India, Japan, South Korea and Taiwan. Apart from this, Switzerland, Norway, Indonesia, Singapore, Thailand, Malaysia, Cambodia, Vietnam and Bangladesh are also under investigation.

America’s concern about production capacity

According to news agency Bloomberg, while talking to journalists, Jameson Grier said that America believes that many big trading partner countries have increased production capacity so much that it is not related to domestic and global demand. In an official statement, Grier said that America will no longer allow its industrial base to be weakened by other countries. He says that many countries are blaming America for the problem of their excessive production and are sending large quantities of goods here.

He said that it is clear from these investigations that the Trump administration wants to re-establish the essential supply system within America and create good-paying jobs for American workers.

Talk of impact on American industries

Grier further said that the Trump administration’s industrial development efforts face a big challenge. Production in many foreign economies is exceeding requirements. In many areas, America’s trading partner countries are producing more goods than they can use in their own countries. For this reason extra goods are being sent to other countries.

This is affecting America’s domestic industries and in many cases, plans to set up or expand new factories in America are also being halted. America’s production capacity in some areas has reduced significantly and in many cases it has lagged behind foreign competitors.

The deal has been done recently

Recently a bilateral trade agreement has been announced between India and America. After this agreement, the Trump administration reduced the import tax imposed on India from 50 percent to 18 percent. According to America, this decision was taken when India assured to reduce and stop oil purchases from Russia. Complete details of this trade agreement between India and America have not been revealed yet. Despite this, both the countries have called it a historic agreement. It is believed that this may strengthen the trade relations between the two countries in the future.

India US relations: The US, who is trying for Ukraine War, has imposed a high tariff on India, in which 25 percent of the tariffs have been imposed as additional panalty due to buying 25 percent oil from Russia. While the American High Tariff has badly affected India’s exports, the relationship between two big democracy of the world has also brought a sour. After this move of Trump, however, India has definitely changed its strategy.

On the other hand, American trade representative Jamison Greer has given a big statement from India regarding the purchase of Russian oil. He said that the purchase of India’s Russian oil is not the basic basis of the Indian economy. He said that now India is moving towards diversification of its energy purchase sources. Greer made it clear that India is a sovereign country and has the right to decide on its own energy policy and international relationships.

During a dialogue held at the Economic Club in New York, Greer said, “India has not always buying so much oil from Russia. It has had strong relations with Russia, but in the last two-three years, India has started buying Russian oil at a discount to consume and re-sell.”

Diversity in oil shopping

He said that this is not a basic or permanent part of the economy of India. He believes that India is understanding this and is now taking steps towards diversifying its energy supply. Greer further said that the US does not instruct a country to or not to keep a relationship with. America is not imposing anyone on anyone with whom they do business with.

Trump Administration says that India’s procurement of crude oil from Russia, indirectly supports Russia’s war against Ukraine. On the question asked about the impact of this new tariff on India, Gold said that it has come into force a few weeks ago. He said that India has a $ 40 billion trade surplus with America- that is, India does not import as much as it exports to America.

He further informed that from the early days of the Trump administration, talks are going on between the US and India regarding the trade agreement. “This additional 25% fee has been levied for a recent increase in the purchase of oil from Russia,” also emphasized that President Donald Trump is focused on ending the Russia-Ukraine war.

Pressure on China with India

“We are putting as much pressure on Putin as possible. We have also talked to our European colleagues – some of them are still buying Russian oil, which is quite contradictory. We are talking not only to India but also to China. We have to end this war,”
They said.

On the other hand, the official attitude of India is that its energy purchase is determined by its national interest and market conditions. After the commencement of the Russia-Ukraine War in February 2022, when Western countries banned Russia and limited its supply, India started buying Russian oil at a discount.

America expresses concern about India’s Russian oil purchase, but also admits that India takes decisions under its independent policy. At the same time, India says that its energy policy is inspired by economic practicality and national interests and not any political pressure.

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