The World is holding its breath as USA and China get ready for a Trade War. US President Donald Trump has threatened to impose a tariff on every Chinese product that comes into the USA. A damaging trade war will send stock markets across the World tumbling and destroy the businesses of retailers, Tech Companies and Manufacturers.
President Trump imposed tariffs on $50 Billion worth of goods from China (Mostly Hi-Tech Imports), which would be subject to 25% tariffs. The US is now threatening to impose tariffs on more than $450 Billion worth of Chinese Goods.
Donald Trump has said that China is making use of the USA and taking out $500 Billion a year to build itself. The US is accusing China of stealing technological secrets and using unfair trading practices like cyber theft, to pull ahead in several industries. China has also threatened to impose equal tariffs on US imports in retaliation.
So where does India fit into the Trade War between USA and China? What is ‘Trade With India’ and why is it important? Let’s find out. Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
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The US has imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico. The tariffs were 25% on Steel and 10% on Aluminum. The European Union has threatened to impose import taxes on Bourbon from the US, Mexico on American farm products (Which is worrying US Farmers) and Canada on Steel and Aluminum imports from USA.
1. USA imposes tariffs on India
USA has imposed tariffs on Indian Steel and Aluminum exports of $240 Million. India has also imposed tariffs of $240 Million on 30 US products in a tit-for-tat measure. This is a very small amount, but holds importance in the context of the trade war between US vs China and US vs Mexico, EU and Canada.
Prime Minister Narendra Modi launched ‘Make in India’ on September 25th 2014. The aim of ‘Make in India’ was to make India a Global Manufacturing Hub, by encouraging MNCs and Domestic Companies to manufacture their products in India.
This is what PM Narendra Modi had said when he introduced Make in India on August 15th 2014. “I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity to come make in India,”
Make in India helps 25 sectors like Automobiles, Chemicals, IT/BPM, Pharmaceuticals, Construction, Mining, Tourism and a lot of other sectors. This would generate jobs and help young Indian citizens contribute to the growth of the Country.
3. Why India needs ‘Trade With India’?
‘Make in India’ is a great scheme which promotes manufacturing in India. But, Make in India alone is not enough. The Government needs to focus on the Export Sector. If money doesn’t come from exports, it would affect job production in the country. Consumer spending would be low. This means high Current Account Deficit (CAD) which is currently 2.5% of GDP.
This is why India badly needs ‘Trade With India’. Trade With India along with Make in India, can reduce tariff barriers (Barriers to Exports) and unlock the power of the Indian Economy.
Countries like Taiwan, Japan and South Korea promote exports. With ‘Trade With India’, our country can also compete with these countries on an equal footing. With Trade wars between US vs China and US vs EU, ‘Trade With India’ is very important. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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