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India strikes back

Posted on June 18, 2019 by Vincent Augustine D'Souza

On 16/6/2019 28 products from USA came under tariffs or higher customs duty in India. This was in retaliation against American tariffs on Indian aluminium and steel since some months and ending Generalised System of Preferences on 5/6/2019.
For too long USA has dictated to India and India has meekly surrendered. Don’t buy oil from Iran. Don’t buy oil from Venezuela. Don’t buy missiles from Russia. Such commands keep coming from USA.
USA has friends and enemies. Against enemies it has sanctions. Against friends it has tariffs. It has trade wars going on with many countries. China is its main target.
For too long countries appeased USA like UK appeased Germany before World War II. Russia and China should have resisted US sanctions on North Korea through UN. They did not do it.
Donald Trump has mentioned Harley Davidson bikes many times. India had 100% tariff on them. India reduced them to 50%. Trump wants no tariff. Some say few Harley Davidson bikes are imported. Zero tariff will not make much difference. With zero tariff, import of Harley Davidson bikes may go up substantially.
USA views India as tariff king. USA’s Commerce Secretary Wilbur Ross had come to India in early May 2019 and had warned of consequences if India imposed retaliatory tariffs. If USA gets nasty, India should get nastier. USA will know India is a pushover. India can do without almonds, apples, walnuts and such things from USA. India can stop buying oil, arms, war planes from USA.
China views USA’s trade and tariff policy as naked economic terrorism. Huawei CFO Meng Wanzhou was arrested on 1/12/2018 in Vancouver, Canada for extradition to USA. China arrested two Canadians, Michael Kovrig and Michael Spavor. They face espionage charges. If Meng is extradited to USA, Canadians can be executed. USA does not want any country to do business with Huawei, accusing it of spying. It is USA that spies on other countries excluding UK, Canada, Australia and New Zealand. Edward Snowden had exposed US spying.
India should be ready for all eventualities including arrests of its citizens in USA and other countries for extradition to USA.

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