![\"USA\u2019s](\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/05\/USAs-Trade-Barrier.webp?resize=624%2C416&ssl=1\")
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Source<\/strong>-This post on USA\u2019s Trade Barrier<\/strong> has been created based on the article \u201cBiden\u2019s tariffs have dealt free trade a heavy blow<\/strong>\u201d published in \u201cLive mint<\/strong>\u201d on 16 May 2024.<\/p>\n UPSC Syllabus<\/strong>-GS Paper-3- Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth.<\/p>\n Context<\/strong>-The article criticizes the recent move by the US to impose steep tariff hikes on clean-tech imports from China, such as electric vehicles from 27.5% to 102.5% (102.5%), lithium batteries, computer chips, and solar cells. USA\u2019s Trade Barrier<\/strong><\/p>\n 1) The USA justifies imposition of high tariffs on the ground of national security and to counter China’s “unfair” subsidies.<\/p>\n 2) The USA claims that it wants to increase imports from other countries<\/p>\n 1) Weaponization of Trade<\/strong> -It leads to weaponization of trade. Such protectionist measures go against economic principles, climate concerns, and geo-pacifist recommendations.<\/p>\n 2) Impact on Free Trade and Geopolitics<\/strong> -Cutting off trade relations has historically led to war, and the actions of the US further harm free trade. This may have negative geopolitical outcomes.<\/p>\n 3) Shifting Away from Global Free Trade Advocacy<\/strong>-Both political parties in the US supporting protectionist tendencies indicates America moving away from being a global advocate for free trade. It has set global trade back with its protectionist measures.<\/p>\n Read more- WTO Reforms and India<\/a><\/p>\n 1) Balancing Export Ambitions with Economic Reasoning<\/strong>– India should try to grab export opportunities. However, India should exercise caution and base its trade policies on economic reasoning rather than yielding to geopolitical influences.<\/p>\n 2) Cautious from Chinese Imports<\/strong> -Cheap Chinese wares, especially in clean-tech markets, could aid India’s economic emergence and climate aims. However, India should remain cautious of potential dumping by Chinese state-subsidized manufacturers.<\/p>\n Question for practice<\/strong><\/p>\n What are the implications of US Trade Barriers for global trade order?<\/p>\n","protected":false},"excerpt":{"rendered":" Source-This post on USA\u2019s Trade Barrier has been created based on the article \u201cBiden\u2019s tariffs have dealt free trade a heavy blow\u201d published in \u201cLive mint\u201d on 16 May 2024. UPSC Syllabus-GS Paper-3- Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth. Context-The article criticizes the recent move… Continue reading USA\u2019s Trade Barrier<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":296021,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10501],"class_list":["post-295975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-live-mint","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/05\/USAs-Trade-Barrier.webp?fit=1280%2C853&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=295975"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/296021"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=295975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=295975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=295975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the arguments given by the USA to justify its stance?<\/strong><\/h2>\n
What are the implications of US trade barriers?<\/strong><\/h2>\n
What should be India’s response?<\/strong><\/h2>\n