This is with reference to your article "US will end up hurting itself more, say experts" (March 6). It has been apparent since the present United States (US) administration assumed office in 2017 that commercial opportunism has been the fundamentals of its economy. However, it is more about revenue strengthening than trade diplomacy that is governing their current policies.
The imposition of duties on its imports will only increase inflation there especially as they constitute major industrial requirements. The US has two major partners in international trade — China and India. Its long standing trade dispute on the imposition of tariff on trade with China, though temporarily thawed, has already had a negative impact on the US economy. The scrapping of preferential trade treatment with India will not hurt us much as only 0.4 per cent of Indian exports are to the US. Accordingly, the impact on profits for Indian exporters on account of the reduction of margin is nominal. About 50 per cent of the products covered under the preferential trade treatment with India are actually in the US import market. There will also not be any negative impact on the internal economy of India.
The current US policy leans more towards financial profit than sustain long-term trade relations with nations. Its exclusive concentration on pricing and attempting to substitute two major trading partners with a group of others will hurt its image, create customer dissatisfaction and inflict substantial economic damage in the long run. India is also well within its rights to move the World Trade Organisation.
C Gopinath Nair, Kochi