What prompted India to reduce its peak tariffs amidst Trump's tariff war

India has decreased its peak tariffs from 150% to 70% in response to Trump's tariff war to improve public perception.
  • India's decision to reduce peak tariffs was motivated by the desire to improve public perception and demonstrate willingness to engage in global trade peacefully.
  • The move aimed to signal India's commitment to promoting trade relations and avoid escalating tensions with the United States following President Trump's tariff war.
  • Lowering peak tariffs also helps in fostering better diplomatic relations with other countries and creating a more favorable environment for bilateral trade negotiations.
  • By reducing tariffs, India aims to enhance its competitiveness in the global market, attract foreign investment, and stimulate economic growth.
  • This strategy reflects India's efforts to adapt to changing global trade dynamics and align with the principles of free and fair trade practices.
Answered 3 months ago
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