India has got involved in a trade war. One of the most fast-developing economies could not resist the pressure and joined the lingering struggle for the best trading conditions. The Indian government introduced additional tariffs on the goods imported from the United States. So far, the customs duties on 28 categories of products have been increased. The measures were announced on the official website of the Ministry of Finance. The tariffs have already come into effect, so now the United States should pay more to import almonds, apples, and walnuts to the country. Thus, the Indian authorities retaliated against US President Donald Trump for his decision to deprive India and Turkey of trade concessions allowed by the Generalized System of Preferences. Remarkably, Trump was justified in imposing this measure. He argued that “India failed to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors”. As for Turkey, it lost privileges due to its “sufficient economic development”. By the way, apart from India’s removal from the Generalized System of Preferences, the United States imposed additional levies on all imports of steel and aluminium. The decision affected Indian businesses. There is a risk that this interchange of tariffs and sanctions may lead to a full-blown battle. Donald Trump has a quick temper: once he flares up, it’s hard to stop him. Time will show how this round of another trade conflict will end.
