American President Donald Trump is worried over the trade war between US and China, has deferred imposing stiff tariffs on steel and aluminum imports. The gap between exports and import by the US and other countries, there is an imbalance. This trade imbalance is the indicator of America's trade policy. It is estimated that America lost 800 billion US dollars every year for so many years, said the spokesperson, a major loss of 500 billion US Dollars in a year to China.
In reality, US trade-deficit has not crossed 375 billion US Dollars. The American version of loss seems to be based on their own source of information. Summing up, the trade deficit is neither loss nor should it wary say some of the American economists. Trump has long been arguing the trade deficit hinders the economic growth. If at all, jobs need to be guaranteed in America, the trade deficit has to be reduced.
If the US imposes a higher tariff to reduce the trade deficit, other countries too will hike their tariffs, reciprocally, thereby widening the gap rather than reducing.
President Trump has gone on records stating that India and China will be forced to pay 'Reciprocal Tax' if they do not match with the American Tariff, this is a serious warning to India and China.
The is as America raised taxes on imports from India, India raised import tax on motorcycle manufactured by Harley-Davidson.India said"of course, there would be some impact as India is an exporter," said the central government officially.