Apparel Online India Magazine July 2nd Issue 2018 | Page 11

WORLD WRAP THE TAX FOUNDATION PREDICTS 48,585 JOB LOSSES FROM THE TARIFFS TRUMP HAS ALREADY ENACTED ON IMPORTS OF WASHING MACHINES, SOLAR PANELS, STEEL, ALUMINIUM AND US $ 50 BILLION ON CHINESE PRODUCTS. Unparalleled control and customization A OM N TA M S IN TW M In the past few weeks, Trump has on many occasions publicly highlighted that he is unhappy with India’s tariff policy and has time and again pointed out that India imposes prohibitive duties of 100% on some products, which is unacceptable. This stand has left little doubt about US intention. Experts stress that the easy access that Indian exports have traditionally enjoyed in the US market could be a thing of the past soon, if the Modi Government does not properly handle Trump’s demand on reciprocity in bilateral trade relations. HA The discussion on whether the tariffs are good or bad for America is currently raging not only around the world, but also with the US. Don Boudreaux, Professor of Economics at George Mason University, in a recent forum, strongly reminded the country that the case against tariffs is not for the sake of the world, but begins at home, to quote him: “When a Government obstructs its citizens’ access to goods and services that these citizens wish to purchase with their own money, that Government makes its citizens, as a group, poorer. And the fact that the goods and services in question happen to be offered for sale by foreigners does absolutely nothing to alter this reality”. As of now, the trade war looks to be getting fiercer, and countries like India that have been sitting on the side-lines can see the signals changing. The US trade deficit with India has become a sore point for the Trump administration, which wants full reciprocity in trade relations with all countries. Any move to levy retaliatory tariffs on India will badly hit small and medium enterprises in sectors like textiles, gems and jewellery, automotive, organic chemicals and pharmaceuticals. Garment exporters already struggling for competitiveness, could be hit very hard. SH TI industrial products, from soybeans, pork and cotton to aeroplanes, cars and steel pipes that are imported from the US. The fear is that going forward, China could also tax US tech companies like Apple, which could force the company to raise its retail prices to compensate. In reality, if the global trade war escalates, it can hurt consumers around the world by making it harder for all companies to operate, forcing them to push higher prices onto their customers. AUT A PE O S, H O LE P SI Supports popular machine formats Delhi: 011-2681 2189 Bangalore: 080-4193 3600 Mumbai: 022-6783 6700 [email protected] www.iigm.in www.apparelresources.com | JULY 16-31, 2018 | Apparel Online India 11