India tariff hike shows vulnerability of US trade strategy - ING
|Timme Spakman, Economist, International Trade Analysis at ING Bank offers his take on the latest retaliatory tariffs announced by India against the US.
Key Quotes:
“India has decided to impose long-awaited tariffs on 28 product groups after the US said it would roll back a duty-free imports scheme for approximately $6 billion worth of imports from India. The tariffs came into effect on Sunday.
These retaliatory measures show the vulnerability of the high-pressure strategy characterized by the current US trade policy. Not all countries will give in so easily to US demands as, for example, Mexico did. Countries that are less dependent on trade with the US will resist, with the risk of escalating tit-for-tat tariff fights.
If it pushes too far in negotiations with India, Japan, the EU, and China, the US could end up being the biggest loser of all. This is because it would then face tariffs with all its trading partners involved in the disputes while the EU and the other counties would face higher tariffs only at the US border.
Although the measures are, in part, a reaction to the US withdrawing preferential market access for India, legally, these tariffs are retaliation against the US steel and aluminum tariffs imposed last year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.