Trade barriers were imposed by different countries from long time. These restrictions were imposed to earn revenue for the government and to protect the domestic industries from the competitive foreign firms. There are different protectionist policy of the government that restrict a country to import goods and services to foreign countries. Through free trade is good for a country but it reduces the domestic employment of a country, creates problem among the small scale industries of the domestic country, and problem in the nation security.
One such restriction is high and unfairly applied tariff. India has imposed anti –dumping duties on stainless steel imports from the U.S economy. Anti dumping duty is a protectionist tariff that a domestic government imposed on the foreign countries from which goods are imported which are cheaper from the domestic production The duties imposed on U.S. on December 2015 are in the range of 4.6 % to 57.4%. and the period is for five years. This step was taken by the Indian government to help the local companies from the competitive foreign stainless steel companies (" India's Mistake In Putting Duties on Stainless Steel ").
As Indian Steel companies are incurring heavy losses this step was taken by the Indian government to protect them. But the prices of the stainless steel products which was low due to cheap imports from foreign countries will rise which will affect the customers confidence on the product about the rise in price and quality of the product (" India's Mistake In Putting Duties on Stainless Steel ").
This has affected the US steel companies and the job holders in the steel industry who may have to bear the consequences of the losses in the company.
As India is the 14th biggest partner of U.S. there are concerns of the U.S. government about the restrictive trade policy of India. There are many tariff that the country has imposed on import of U.S. goods. Among these tariffs some have come down but there are others that are pretty high. So, the easing of restriction on exports will boost the trade of U.S. with India ("U.S. concerned over Indian trade barriers.").
U.S. has discussed with India about the policy of easing restriction and opening its economy on the Doha trade talks and both the countries are looking forward to more foreign investment with low tariff rates ("U.S. concerned over Indian trade barriers.").
Works Cited
Worstall, Tim. “India's Mistake In Putting Duties on Stainless Steel.” Forbes Opinion. (2015). 12th December.
www.forbes.com/sites/timworstall/2015/12/12/indias-mistake-in-putting-import-duties-on-stainless-steel
Mathews, William. "U.S. concerned over Indian trade barriers." Reuters. (2011). 4th February.
www.reuters.com/article/us-india-us-trade-idUSTRE7161G120110207
