'This is unacceptable and the Tariffs must be withdrawn': Trump's message to PM Modi before G-20 meeting

Trump's warning shot.

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'This is unacceptable and the Tariffs must be withdrawn': Trump's message to PM Modi before G-20 meeting


Significantly, upping the ante ahead of meeting with Indian PM Narendra Modi on the sidelines of G-20 at Osaka, Donald Trump said on Twitter, 

Trump said, " I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!". 

Reuters reported, "Government sources rejected Trump's argument, saying Indian tariffs were not that high compared to other developing countries and U.S. tariffs on some items were much higher."

In the current month Finance Ministry decided to impose additional customs duties on 29 US products including almond, walnut and pulses, with effect from June 16. India would get about $217 million additional revenue from such imports.

The summit meeting will take place on Friday. 

The United States (US), on June 5, withdrew duty-free market access to over 3,600 products that it was providing to India under the Generalised System of Preferences (GSP).   The GSP was put in place in 1971, under which 13 developed countries provide duty-free access to designated products for beneficiary developing countries.  

Interestingly, Trump made this comment even when his Foreign Secretary Mike Pompeo is currently touring India. Issues regarding missile deal with Russia, trade deal with China and huge trade deficit are some of the major things that are plaguing India-US relationship currently. While both Jaishankar and Pompeo affirmed commitment of their respective countries towards an improved relationship, the needle on these key issues haven't moved significantly on Wednesday. Now Trump's tweet is only likely to add fuel to the fire.

Earlier too, Trump has railed about high tariff imposed on Harley Davidson imported to India. 

With agency inputs

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