Why Tariffs Become an Issue Between India & the U.S.

• The U.S. argues that India’s tariffs are high on items like agriculture products, automobiles, and medical devices.
• India argues tariffs are needed to protect farmers, small industries, and local manufacturing.
• Disputes arise when one country feels its exporters are treated unfairly.

Tariffs – Meaning

• Tariffs are taxes imposed by a government on imported goods.
• They make foreign products more expensive, protecting domestic industries.
• Tariffs can be used as a trade policy tool or as pressure during negotiations.

Key Trade Concepts You Should Know

1. Bilateral Trade: Trade between two countries.
2. Trade Deficit/Surplus: When imports are more/less than exports.
3. Market Access: Ease with which foreign companies can sell in another country.
4. Non-Tariff Barriers: Rules, standards, or regulations that restrict trade without using tariffs.
5. Free Trade Agreement (FTA): Agreement to reduce or remove tariffs between countries.