Days after displaying bonhomie with Prime Minister Narendra Modi , US President Donald Trump did a somersault. He attacked India for placing higher tariff on American goods and called the situation as ‘unacceptable’.

This comes days after his previous tweet, wherein he wanted India to withdraw tariff the Modi Government had levied against American goods.

Recap of the situation

Tension between the two countries escalated after India slapped retaliatory tarrif against 28 products from United States

This was done after United States withdrew the tariff-free entry of some Indian goods.

US is also upset with India for trying to restrict cross-border data flow. India is also planning to regulate e-commerce sector, a move that could hurt Uncle Sam.

US govt also stripped India of a preferential status, a covered title that shielded India from US taxes.

Background of US-India Trade:

Year: 2018

Worth: $142.1 Billion

India’s surplus: $24.2 Billion

What’s interesting about this standoff?

This standoff comes at a time when US is trying to mend ways with China.

US-China meet will be held this week, a month after Trump & Xi Jinping met on the sidelines of SCO Summit.

India is yet to officially react to this development. What remains to be seen will the developing superpower fend off the pressure exerted on it?

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