India’s tariff feud with US exposes fault lines

In a letter to the Congress earlier this month, US President Donald Trump signaled plans to end preferential trade treatment for India that allows duty-free entry for Indian exports worth $5.6 billion. This is another front in his trade war after the US announced 25 percent tariffs on imported steel and 10 percent on aluminum in March 2018.

Some analysts believe the latest move by Trump targets a new set of rules of the Indian government aimed at leveling the e-commerce field in India which could hurt US giants like Amazon and Walmart-owned Flipkart.