Dangerous spiral

Dangerous spiral

News

1. India is the latest to join the global trade war.

Important Facts

2. India impose tariffs as high as 50% on a list of 30 goods imported from the U.S.
3. India’s notification to the WTO says that U.S. tariffs on steel and aluminium would cost India $241 million.
4. The tariffs imposed on the U.S. is in proportion to these amount.
5. India has also indicated its preference to deal with the issue through dialogue, and not “measures and counter-measures”.
6. Global trade war start with the imposition of tariff by US to discourage the import of steel and aluminum into the country.
7. In retaliation China and EU also impose tariff

• In total US impose tariff on $450b of Chinese goods
• China impose tariff on $50b of US goods
• EU impose tariff on $3.3b of US goods

8. The threat of trade war is also visible in global trade market.
9. During G-7 summit US rejected the idea of “rule based trading system”
10. In last, global powers must try to end the ongoing trade war before it gets out of hand.
11. The longer it goes on, the greater the cost as growth slows down under increasing burden of taxes.