World Economy

US Presses India to Cut Tariffs

US Presses India to Cut TariffsUS Presses India to Cut Tariffs

US businesses and diplomats are pressing India to cut tariffs, industry and government sources say, after New Delhi’s move, to increase customs duties on dozens of products to help its flagship Make-in-India drive, aggravated differences over trade. Ford, which has two plants in India, has sought a reversal of the new tariffs on auto components, while Apple Inc is concerned its iPhones have become even more expensive in the price-conscious $10 billion smartphone market, Reuters reported. India and the United States have built close political ties and Prime Minister Narendra Modi was in Washington last summer, bear-hugging President Donald Trump in his personalized style of diplomacy. But trade friction is casting a shadow. A US State Department spokesperson in Washington told Reuters that India should lower trade barriers, which were holding back economic ties. Trump has already called out India for its duties on Harley-Davidson motorbikes, and this month Modi ordered them cut to 50% from 75% for high-end bikes. But that has not satisfied Trump, who pointed to zero duties for Indian bikes sold in the United States.

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