WTO

The remittance tax could squeeze Indian household budgets, dampen consumption and investment, and undermine one of India's steadiest sources of foreign exchange, warns a brief by the Delhi-based Centre for WTO Studies.

WTO Chief Economist Ralph Ossa said: "Tariffs are a policy lever with wide-ranging, and often unintended consequences."

"The key thing to remember is that agriculture in the two countries is entirely different," says Abhijit Das, former head of the Centre for WTO Studies at the Indian Institute of Foreign Trade.

And while Trump hasn’t yet withdrawn from the WTO, as he has from the World Health Organization and the Paris climate accords, don’t count on it not happening.

But under WTO rules, they are not supposed to discriminate between nations when setting the tariff they charge on a particular imported good.