U.S. Accuses India of Helping China Evade Tariffs in Trade Report
· World · The Hindu, Fortune
Last week, the White House published a report titled 'The Great Transhipment Scam' accusing about 40 countries, including India, of helping China evade U.S. tariffs. The U.S. and Chinese economies have been deeply intertwined for decades, with the U.S. running huge trade deficits by importing more than it exports. U.S. President Donald Trump has long expressed concerns over these vast deficits and insisted on levying tariffs on trade partners during his second term. In 2018, the U.S. imposed tariffs ranging from 7.5% to 100% on Chinese goods such as electric vehicles, semiconductors, and medical products under Section 301 of the Trade Act of 1974. According to the report, Chinese exporters have increasingly routed goods through third countries to evade these tariffs since 2018.
Why it matters
The U.S. allegations could impact India's trade practices and growth story if Washington introduces punitive measures against countries accused of helping China evade tariffs.
Read the original report — The Hindu
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