India-US trade relations worsened under Trump admin: Congressional report

A United States Congressional report has said that the US-India trade relations under President Donald Trump have deteriorated because of the increased tariff policy from both sides. Trade ties between India and the United States got worse under Trump despite his very good relationship with Indian Prime Minister Narendra Modi. According to a report released by the Congressional Research Service (CRS), the United States and India have both imposed tariffs and counter-tariffs on each other since Trump took over the White House in 2017. 

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As per the report, the United States imposed tariffs on key Indian exports, including steel and aluminum in 2018. The report added that India waited to resolve the dispute before ultimately imposing counter-tariffs on American products, affecting about USD 1.32 billion of US exports. Both Washington and New Delhi are challenging each other's tariffs in the World Trade Organisation (WTO). 

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"Under the Trump administration, bilateral tensions increased over each side's tariff policies. In general, India has relatively high average tariff rates, especially in agriculture. It can raise its applied rates to bound rates without violating its commitments under the WTO (World Trade Organization), causing uncertainty for US exporters," the CRS report said. 

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What would ties look like under Biden?

Experts suggest trade relations between the United States and India would take a new turn in 2021 after President-elect Joe Biden takes over on January 20. Biden has pledged to move away from all of his predecessor's policies, including in the Indo-Pacific, where he has promised to take the ties with New Delhi to new heights with Indian-origin Vice-President Kamala Harris by his side. The trade relations between India and the US could also change given both New Delhi and Washington renegotiate their entry into RCEP and CPTPP respectively. 

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(With inputs from ANI)