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US-India Trade Tensions: Who Will Come Out on Top?

#us #india #trade #economy

India isn’t flinching: Why Trump might be misreading India’s tariff playbook - CNBC

Introduction

The relationship between the United States and India is a complex one, with both countries being major players on the global stage. However, recent trade tensions between the two nations have brought their relationship to the forefront of discussions. President Trump's approach to trade negotiations often involves imposing tariffs, but his tactics may not work with India, as they are not showing signs of backing down. It seems that Washington may be misunderstanding India's calm and collected response as a sign of weakness, when in reality, it could be a strategic move.

Key Details

While the U.S. has been imposing tariffs on countries like China, India has not been a major target. However, the U.S. recently removed India from its Generalized System of Preferences program, which allowed India to export certain goods to the U.S. duty-free. In response, India has announced retaliatory tariffs on 28 American products, including almonds, apples, and walnuts. While this response may seem minimal, it is a strategic move by India to protect its domestic farmers and industries, and it shows that India is not afraid to stand its ground against the U.S.

Impact

The U.S. may be underestimating India's strength and determination in this trade dispute. While the U.S. may have more leverage due to its larger economy, India is not backing down and is willing to

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