Experts wary of reciprocal tariffs

THE PLAN THAT has been announced says that it seeks to address all disadvantages that American businesses face globally ranging from digital services tax to non-tariff barriers including subsidies and burdensome regulatory requirements.

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Exchange rate management, wage suppression and even local taxes are also on the radar.

"Reciprocal tariff is a highly problematic issue because there are many variables which the US could take into account while deciding their customs duty. Import duty is just one variable," Abhijit Das, an expert on international trade said.

Experts are also cautious about the announcement of an early conclusion of mutually beneficial trade agreement during the meeting between Trump and Prime Minister Narendra Modi. India has not been comfortable negotiating a bilateral trade pact with the US in the past even though it is engaging with other developed economies like UK, European Union, Japan and even Canada.

"From the US, the demands are high, involving agriculture, intellectual property, government procurement etc. This is the reason India has held back in the past," acting president and distinguished professor at Council for Social Development Biswajit Dhar said adding that 'it (trade pact) is not in India's interest'.