Economists from Morgan Stanley to Nomura Holdings Inc. have warned that India and Thailand will face the most risks due to President Donald Trump’s plan to impose reciprocal tariffs.
Both India and Thailand impose high tariffs on the United States. Both countries impose tariffs on many goods ranging from 10-25 percent on the United States. Now due to reciprocal rules, the United States will impose similar tariffs on India and Thailand. Now the United States imposes less than 10% on Indian and Thai goods. The average rate that India imposes on American imports is more than 10 percentage points higher than the tariff that the United States imposes on Indian goods.
Due to Trump’s rule, sales of Indian and Thai goods will decrease. Due to this, both countries, which are currently gaining momentum in exports, will face serious impacts. We want to treat other countries equally, Trump has warned. Trump is strict on import and export tariffs. If India does not reduce import tariffs. Trump will impose tariffs. This may increase the price of goods in India.
The first list of countries that will be subject to tariffs released by US President Donald Trump did not mention India. But China’s name is included. Trump has imposed this tariff on the basis of trade deficit. He imposed 25 percent tariffs on Mexico and Canada and 10 percent tariffs on China.
China, Mexico and Canada occupy the top 3 places in the US trade deficit, with China contributing the most to 30.2 percent, Mexico 19 percent and Canada 14 percent of the tariff deficit.
India accounts for only 3.2 percent of the total US trade deficit. India is ninth in the US trade deficit. Therefore, India is not in the first list of countries where the US has imposed additional tariffs.
India is the leader in natural gas imports from the US. There are opportunities for India to appease the US by importing additional natural gas from the US.
US President Donald Trump has announced that he will impose a 25% tariff on all steel imports to the US. As Indian steel is used in large quantities in the US, Trump’s decision is likely to affect India’s steel exports. American traders are likely to buy steel products from other countries. This is expected to have a huge impact on international politics.
Due to Trump’s rule, sales of Indian and Thai goods will decrease. As a result, the two countries, which are currently growing in exports, will face serious consequences.
India and Thailand face greater risks due to Trump’s tariffs… My Bharat Guru
