Trade Tensions in Agriculture: The Impact of India’s Agriculture Protectionist Policies on U.S Tariffs

Abstract

The study looks into the role of India’s agricultural protectionist policies in forming trade frictions with the United States. India, with a high number of small and marginal farmers, has for a long time adopted protectionist policies to safeguard its farmers, food security and rural livelihood. This has triggered the U.S., as Indian agricultural products are taxed at a very low rate in international markets. India has a dualist tariff network for their agricultural and non-agricultural products. India has the highest tariff framework for agricultural products, ranging between 38% to 39% and a very low tariff framework for non-agricultural products, which is around 13%, and all these have led to the U.S in imposing retaliatory tariffs on Indian goods.