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India’s decision to impose steep tariffs on American goods has triggered a fresh wave of trade tensions between New Delhi and Washington. The White House has raised concerns over the 150% tariff on American alcohol and a 100% duty on certain agricultural products, calling it an unfair barrier to US exports. Officials from the Trump administration have criticised these duties, arguing that they create an imbalance in bilateral trade.
The dispute has placed particular focus on Kentucky bourbon, a major American export that faces heavy taxation in India. The White House press secretary highlighted the issue, stating that the tariffs make it difficult for US businesses to compete in the Indian market. Washington has repeatedly pushed for a reduction in these tariffs, citing the need for a more reciprocal trade relationship.
In response to the mounting pressure, India has taken a small step by lowering duties on bourbon whiskey from 150% to 100%. While this move has been welcomed by American trade representatives, it falls short of their broader demand for a significant reduction in import taxes on all US goods. The Indian government has defended its tariff structure, arguing that it protects domestic industries and generates crucial revenue.
Commerce Minister Piyush Goyal is set to hold discussions with US officials to prevent the situation from escalating into a full-fledged trade dispute. Washington has hinted at possible countermeasures, including reciprocal tariffs on Indian exports. If no resolution is reached, Indian industries relying on the US market could face retaliatory action.
The ongoing trade spat comes at a time when both countries are working to strengthen economic ties. With high-level talks underway, stakeholders on both sides are hoping for a breakthrough that ensures a fair and balanced trade relationship. However, with India reluctant to back down on its tariff policies, the road ahead remains uncertain.
