India Joins the Tariff War: The Party is Just Starting!

In response to Trump's tariffs on steel, India will put tariffs on Harley motorcycles, lentils, and almonds.

Following the well-established belief that "trade wars are easy to win", India counters Trump tariffs, to hike duty on US bikes, almonds, apples.

India has proposed to raise import duty on 30 products, ranging from motorcycles and certain iron and steel goods to boric acid and lentils. The customs duty on some of the items may be raised up to 50 per cent, in a signal that New Delhi will hit back at America's protectionist policies that range from a tighter visa regime to higher import duties.

The additional duty proposed to be hiked on these items ranges from 10 per cent to 50 per cent. Those at the lowest include almonds, walnuts and fresh apples - which will cost a little more for consumers as an additional duty of 10 percent is proposed to be imposed.

But the real impact will be on products such as motorcycles over 800 cc - a move targeted at Harley-Davidson - where an additional duty of 50 percent has been proposed. This is seen as a real counter to President Donald Trump who had demanded a reduction in tariff on the cult bike brand.

The government threatened further action. "India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US," it added.

Let It All Hang Out

Party Just Starting

It's so easy when it's all easy. As Trump says "Trade Wars are Good and Easy to Win"

The party is just starting. Who's next?

Related Articles

  1. Stupid is As Stupid Does: Trump Hits China With $200 Billion More Tariffs
  2. Des Moines Register: "China Tariffs Could Cost Iowa Farmers Up to $624 million"

Mike "Mish" Shedlock

Comments (10)
No. 1-10
pi314
pi314

So what is the current size of trade between USA and India?

Mike Mish Shedlock
Mike Mish Shedlock

Editor

It's supply chains that matter - not amounts. That said. India supplies little. India is currently our 9th largest goods trading partner with $67.7 billion in total (two way) goods trade during 2016.

Mike Mish Shedlock
Mike Mish Shedlock

Editor

Addendum

I received an Email from Don Boudreaux on the broken link. He fixed it.

The link points to Libertarians & Immigration.

Inquiring minds may wish to give it a look.

Mike "Mish" Shedlock

Stuki
Stuki

Nothing promotes future growth opportunities for US companies, like inducing a country with a rapidly growing, massive, population and middle/consuming class, to look for alternatives to US products in their early, formative years. An entire US population worth of new consumers coming online in a generation or so, who will arrange their lives around non-US products instead...

Guinny_Ire
Guinny_Ire

fyi your internet page is spotty. Sometimes it won't load, or keeps trying to load. It's getting difficult to follow your posts

channelstuffing
channelstuffing

harleys are made with chinese parts,lol!trade war lol,all USA has to offer in a "trade war" is LENTILS LMMFAO!That's all this country produces ,massive dept,massive ever growing 3rd world gov't and wait for it......LENTILS LOL

RonJ
RonJ

The gold window is closed.

It wasn't the closing of the gold window, that changed everything, it was what lead up to the closing of the window. The first U.S. factory closed and moved to China. As of now, many years later, 60,000 U.S. factories have closed. Nothing occurs in a vacuum. Eventually, it creates a huge pressure in the opposite direction. The spiraiing of inflation in the 1970's started out as a small increase in the 1960's. In 1980 the pressure was to end the spiral. Inflection point.

We are now at another inflection point. What has been going on, can't continue.

everything1
everything1

Gold window is not closed for India, the citizenry never closed it. China citizens ran with that one as soon as government authorized. They are big savers too. When you have A. inflationary periods (India does), and B. Government that can devalue your currency while your sleeping at night (China does) People think .. I need some tangibles, whatever works, gold doesn't need to be maintained, it doesn't generate revenue, but it's something. Tariffs, reminds me of the boston tea party. I have a feeling (maybe?), this may cheapen things as give producers cheats and shortcuts to save their profits. The other part of me just sees big shots blowing air.

Realist
Realist

The party is indeed getting started: the US vs the World. Tariffs from a country of 300 million vs tariffs from countries with 4 billion residents. This could get interesting.

Kinuachdrach
Kinuachdrach

In reality, the "party" started a long time ago. In the aftermath of World War II, when Europe was on its knees and Communism was expanding, it made sense along with the Marshall Plan for the US to agree to lop-sided trade deals which stimulated economic growth outside the US. But that was then, and this is now.

The solution to this long-running trade war is for the Germans, Chinese, Mexicans, etc to stop fighting to preserve the unnatural advantage the US so generously gave them in prior years.