Author Topic: Mr. Trump to Impose Stiff Tariffs on Steel and Aluminum  (Read 98103 times)

Cigarbutt

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Re: Mr. Trump to Impose Stiff Tariffs on Steel and Aluminum
« Reply #660 on: May 12, 2019, 05:53:20 AM »
The other major country with which US trade is booming is India. India also has a large population, labor pool that can be tapped into.

Exports are seeing 20% jump this year so far, on the back of 30% last year and 20%+ the year before. In each of the last three years, the deficit has fallen.

With massive investment flow from the US to India (from companies, individuals) and a large, prosperous Indian American population - I see this relationship growing.



^ The above mentioned move from Vietnam to China has been going on for a while because labor cost in Vietnam are lower than in China. Also a lot of local labor markets in China a simply saturated.
In the grand scheme of things, the India trade balance deficit is relatively small but still fits in the "unfair" category according to the official definition.
The balance has slightly "improved" lately but is still about 2,5x since 2008:
https://fas.org/sgp/crs/row/IF10384.pdf
The renegotiating phase with potential tit-for-tat is still going on:
https://www.livemint.com/politics/policy/as-us-delays-withdrawing-gsp-benefits-india-postpones-retaliatory-tariffs-1556766723738.html


shalab

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Re: Mr. Trump to Impose Stiff Tariffs on Steel and Aluminum
« Reply #661 on: May 12, 2019, 07:39:37 AM »
The "unfair" category is correct - I sent over papers to open a brokerage account in India and they were held up by customs for more than a month! I spent a bunch of cash to send it within a week. All that was in it were a bunch of documents and nothing of value. It is not fair to have almost zero  tariffs on one side and 50-100% tariffs on the other. Then there are non-tariff barriers like the customs case where things are held up with no reason.

Despite this, I see a bright future for US and India relations. US companies operate in India more freely than in China. Although there is trade/service deficit, more cash is being invested and investment income coming back to US. India is also a defense ally. Some of it is captured in this doc from us trade representative. 

https://ustr.gov/countries-regions/south-central-asia/india

US companies/individuals own property and investments in Indian companies. Cummins India, Proctor Gamble India, Colgate Palmolive India are all offshoots of US listed companies with the parent still owning significant chunks. BTI owns a third of ITC. The internet companies also have a foot hold in India and are doing well.


The other major country with which US trade is booming is India. India also has a large population, labor pool that can be tapped into.

Exports are seeing 20% jump this year so far, on the back of 30% last year and 20%+ the year before. In each of the last three years, the deficit has fallen.

With massive investment flow from the US to India (from companies, individuals) and a large, prosperous Indian American population - I see this relationship growing.



^ The above mentioned move from Vietnam to China has been going on for a while because labor cost in Vietnam are lower than in China. Also a lot of local labor markets in China a simply saturated.
In the grand scheme of things, the India trade balance deficit is relatively small but still fits in the "unfair" category according to the official definition.
The balance has slightly "improved" lately but is still about 2,5x since 2008:
https://fas.org/sgp/crs/row/IF10384.pdf
The renegotiating phase with potential tit-for-tat is still going on:
https://www.livemint.com/politics/policy/as-us-delays-withdrawing-gsp-benefits-india-postpones-retaliatory-tariffs-1556766723738.html