Donald Trump, who was sworn in as the America President for the second time, has confirmed that he will once again make America the world’s leading manufacturing hub. He has also declared a trade war against various countries. Will US President Trump’s aggressive orders affect India? How is India going to deal with Trump’s tariff blunder? A news collection on this.
Trump, who was sworn in as the 47th President, has announced that he will impose a 60 percent tariff on goods imported from China and a 25 percent tariff on goods imported from Canada and Mexico. President Trump has also announced that if the countries in the (BRICS) BRICS group trade in a currency other than the dollar, they will be subject to a 100 percent tariff.
The 25 percent tariff on Canada and Mexico will come into effect on February 1. Moreover, the tariff on China will be announced in a few days. After that, Trump is expected to announce tariffs on India.
For the past several years, the United States has been India’s largest trading partner. In the last fiscal year, India’s exports to the United States were about 7 lakh crore rupees.
The trade surplus with the United States has grown at an average annual rate of 9.8 percent in the last decade.
In particular, exports to the United States have grown significantly in sectors such as machinery, pharmaceuticals, electronics and semiconductors.
If the United States imposes high tariffs on Indian goods, it is expected to have a major impact on bilateral trade.
In this context, economists have said that the Prime Minister Modi government is ready to face any action taken by the Trump government to reduce India’s trade surplus with the United States.
It is understood that India is planning to import more alcohol such as whiskey, steel and oil from the United States and reduce taxes on imported goods.
In addition, reports suggest that India may buy more goods including soybeans, dairy products, vehicles, medical equipment and aircraft from the United States. It is also reported that it is considering a limited trade deal with the US.
Meanwhile, India has agreed to take back 18,000 illegal immigrants from the US. This is seen as a decision taken to appease the Trump administration.
The Wall Street Journal reported that President Trump has told his officials that he wants to visit China within the next 100 days.
Earlier, inviting Chinese President Xi Jinping to attend the inauguration ceremony and postponing the decision to ban the Chinese app TikTok in the US, all of which seem to have changed his attitude towards China.
During the presidential election campaign, Trump had strongly criticized India for imposing high tariffs on American goods and calling India the king of tariffs. Earlier, during his first term, in 2018, he had taken action by imposing high tariffs on Indian goods such as steel and aluminum.
Immediately, India imposed tariffs on 26 products imported from the US, such as apples and walnuts.
India is taking steps to turn the trade war between the US and China to its advantage.
Therefore, economists say that India will not pursue a confrontational course with the Trump administration.
America’s trade war… China’s grip is tightening… India is trying to take advantage…! My Bharat Guru
