India Sanctions in Shadows in Trade War Expansion

India Sanctions in Shadows in Trade War Expansion

Indian Prime Minister Narendra Modi and President Donald Trump. Despite cordial appearances, the trade war between India and the U.S. continues. (Image by The White House) Details DMCA President Donald Trump’s trade war with the People’s Republic of China has received much scrutiny from economists, pundits, and the media. After all, China is the world’s second largest economy in terms of Gross Domestic Product (GDP), and the world’s largest economy in terms of purchasing power parity. What has gotten less scrutiny is his trade war with India. That is unfortunate. That trade war has the potential to be almost as devastating to U.S. exports and its overall economy as the trade war with China. Because India’s is the fastest growing economy in the worldthe sixth largest in terms of GDP, and expected to overtake the United Kingdom for fifth place this year. India is not a trading partner the U.S. should abandon. Under the President’s orders, the United States ended its preferential trade treatment for India in June, removing it from the Generalized System of Preferences (GSP) program that permitted duty-free entry for more than $5.5 billion of India’s exports to the U.S. annually. Just as China imposed countermeasures on the President’s tariffs on Chinese goods, hurting American producers and exporters of fish, nuts, soybeans, and vehicles and their workers, India retaliated against 28 U.S. products including almonds, apples, and walnuts, harming those goods’ producers, exporters, and workers as well. That roused even typically Trump-loving Republicans in Congress to […]

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