India US trade talks: Former Reserve Bank of India (RBI) Governor Raghuram Rajan has expressed his opinion regarding the ongoing tariff talks between India and America. Rajan said in an interview given to American think tank DeKoder that India should aim to keep its tariff level in the range of 10 to 20 percent in the ongoing trade talks with America. India should not make any promise which will be difficult to fulfill.

Everyone is curious about the results of the ongoing trade talks between India and America. America has imposed a tariff of 50 percent on India. Market experts believe that there is every possibility of loss to the Indian economy due to this.

What did former governor Raghuram Rajan say?

During a conversation with American think tank DeKoder, Rajan talked about keeping India’s tariff level in the range of 10 to 20 percent. He also said that India should not make tough commitments like Japan and European countries. Due to which the country’s economy may suffer losses in future. According to Rajan, if India can reach zero tariff level in this tariff negotiation, it will be good for the country.

At the same time, we have to keep in mind that we should not be left behind by our competitors. Many countries of East and South Asia have agreed to 19 percent tariff on American tariff. Whereas, if we talk about developed countries like Europe and Japan, the tariff has been agreed upon at 15 percent. Raghuram Rajan feels that, keeping all these things in mind, India should keep the tariff level from America between 10 to 20 percent.

Tariff talks continue between India and America

America has imposed a huge tariff of 50 percent on goods imported from India. Due to which the demand for Indian products is likely to fall in the American market. Tariff negotiations have taken place at many levels between America and India. Recently, an Indian delegation has returned from a trip to America.

Indications are being given from both the countries that the talks will be positive. America is talking about a ban on buying Russian oil. However, India has clarified that their objective will be according to the interests of Indians.

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Trade tension between America and China has increased again. This time the reason for controversy is the additional tariffs imposed by America on China. US President Donald Trump recently announced that 100% additional tariffs will be imposed on China from November 1. Earlier, America had imposed 30% tariff on goods imported from China. This means that China will face a total tariff burden of 130%.

American officials say that this step has been taken to protect America’s domestic industries from foreign competition and reduce the trade deficit. On the other hand, China has made it clear that it wants to resolve this issue through dialogue. The economies of both the countries are the largest in the world and the conflict between them also impacts the global markets.

Next conversation may take place next week

US Finance Minister Scott Besant has informed that talks will be held between America and China next week. In this meeting, Besant will personally meet China’s Deputy Prime Minister He Leifeng. The main objective of the meeting is to save both the countries from trade tension and the global economic loss caused by it.

Experts believe that this meeting will not be held only on the issue of tariff rates. In this, the long-running trade imbalance and economic cooperation issues between the two countries will also be discussed. If the meeting is positive, global markets may also get relief from it.

Impact of ever-increasing tariffs

The impact of the tariff war is not limited to America and China only. This also puts pressure on companies, investors and consumers of other countries. Products like electronics, technology and automobiles imported from China will become expensive. Due to increase in the prices of these products in America, consumers will also have to pay more.

China gave these indications

China has indicated that it is ready for talks. However, the stance of the Trump administration is still tough. Trump has consistently said that his primary goal is the protection of American industry and employment and for this he is ready to take any step.

International trade experts say that some agreements may be reached in next week’s meeting, but a complete solution is difficult at the moment. If the meeting is successful, then trade tension between America and China may reduce in the future.

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US President Donald Trump has affected the economies of many countries through the tariff bomb. Its effect has been seen in India also. However, at the moment there is a relief news that the Trump administration has postponed the plan to impose tariffs on generic medicines. This decision has brought great relief to the Indian pharmaceutical industry, because most of the cheap medicines used in America are exported from India. If tariffs were imposed, Indian medicines would become expensive in the American market and their demand could decrease.

According to the report of medical data analytics company IQVIA, about 47% of generic medicines used in America come from India. India’s share is so large that it is often called the Pharmacy of the World. Indian medicines have an important contribution in the health sector of America. Life-saving medicines like diabetes, blood pressure, cholesterol and antibiotics are imported in large quantities from Indian companies. The price of these medicines is much lower than local production in America, which provides relief to the citizens there.

Why was this U-turn taken?

According to The Wall Street Journal report, the Trump administration had started an investigation into imposing tariffs on generic drugs. In this investigation, not only the finished medicines but also the raw materials (API) used in their manufacturing were included. However, after investigation, the Commerce Department recommended limiting this scope, because many experts believed that imposing tariffs on generic drugs would increase drug prices in the US and could also lead to market shortages. One group wanted to bring production back to America by imposing high tariffs on drugs from foreign countries, while the other group believed that such a step would be harmful to the American people.

Tariff war and global impact

Donald Trump’s tariff policy has made headlines globally in the last few months. First they imposed import duties on China, in response to which China stopped purchasing American agricultural products. This caused a big blow to American farmers and created a crisis situation in the agricultural market there. Similarly, if drug tariffs were imposed on India, it would have an impact on the American health system as well. Without India’s affordable and reliable medicines, the same treatment would have cost much more to American patients.

Role of Indian Pharma Industry

India’s pharmaceutical industry is the leader in the field of generic medicines worldwide. Indian companies send cheap and high quality medicines not only to America but also to countries in Europe, Africa and Asia. The US market is the largest export destination for India, where billions of dollars worth of medicines are sent every year, so postponing the Trump administration’s decision is a relief news for Indian companies.

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US President Donald Trump has introduced a new proposal to impose tariffs on furniture imports. He said that the investigation will be completed in the coming 50 days and after that it will be decided how much a fee should be imposed on the furniture coming in America from other countries. Trump believes that this step will strengthen the American industry and bring production inside the country.

Why does Trump want to put tariff on furniture imports?

Trump in his statement especially mentioned states like North Carolina, South Carolina and Michigan. These states were once large centers in the furniture industry, but due to cheap labor and low production costs, most companies took their work abroad. Trump says that the new tariffs will be forced to produce companies again in America.

Trump’s announcement impact on the stock market

The impact of this announcement was directly seen in the US stock market. Shares of major furniture and home goods companies such as Wayfair, RH and Williams-Sonoma declined. While American manufacturing company like La-Z-Boy, which makes most of the furniture in America, increased its shares. Analysts believe that if the tariff is applied, foreign products will become expensive and domestic companies will get benefit.

Trump administration is investigating

The US Department of Commerce is currently investigating. This investigation is being done under Section 232 of the Trade Extension Act, 1962. This law allows the US government to impose tariffs on such products which are considered necessary for national security. However, it is not clear whether this tariff will be in addition to the current duty or will replace it.

Furniture industry used to provide employment to 12 lakh people in US

There was a time when America’s furniture industry was very strong. In 1979, about 1.2 million people used to work in this industry. By 2023, this number has come down to just 3.4 lakhs. The main reason for this decline is considered cheap production abroad and large -scale outsourcing. Trump says that the new tariff will not only promote the American industry but will also return employment for thousands of people.

Will Trump’s announcement be affected by India?

The proposal to impose tariffs on furniture imports is part of the widespread strategy of the Trump administration. The government is already considering putting tariffs on other products as well. These include copper, semiconductor and pharmaceuticals. The goal of this strategy is to promote domestic production, reduce foreign dependence and reinforce industry and employment in the US. Let us know that this announcement of Trump is also going to affect India because India also exports a large amount of furniture in America.