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COVER STORY JANUARY 10, 2025 | The Indian Eye 4

TRUMP 2.0 ADMINISTRATION

AN OPPORTUNITY

FOR INDIA?

Donald Trump’s threat to impose tariffs on India has caused some serious concerns.
But, the Indian government is already working on plans for better relations with

the US under the next administration

OUR BUREAU

Washington, DC/New Delhi
S President-elect Donald
Trump dropped a bombshell
Urecently as he set the stage
for a potential trade conflict with In-
dia, threatening to impose reciprocal
tariffs if the country continues to levy
high taxes on American goods. Speak-
ing with reporters at his Mar-a-Lago
resort recently, Trump criticized In-
dia’s steep tariffs, including the 100
per cent tax on certain US products,
and warned of a tit-for-tat approach if
these practices persist.
“I’ve always said, if they tax us, we
tax them the same amount,” Trump
remarked, signalling a tougher stance
on India and other nations like Brazil
for imposing high tariffs on US im-
ports. His comments formed part of a
broader discussion on the state of US
trade relations with major partners
such as China, Mexico, and Canada.
While Trump’s statement did
not create panic in New Delhi, it has Trump repeatedly threatened during his election campaign to impose tariffs on other countries including India (File photo)
caused some serious concerns in India.
But there are two different views ico, and Canada could lead to trade that India stands to gain as a reliable said. Currently India slaps about a
about the potential crisis in the In- diversion”. alternative for exports amid shifting 45% import tariff on pork, which is
dia-US relations. It also mentioned that Trump has trade patterns. mostly supplied by the U.S.
India has a significant opportu- threatened to impose steep tariffs as India is already preparing to offer Tariffs could also be reduced on
nity to capitalize on export prospects part of his economic policies aimed at tariffs cuts on some farm and other high-end medical devices such as pace
resulting from expected trade dis- protecting American industries and goods mainly imported from the U.S., makers and luxury motor-cycles, in-
ruptions by upcoming US President addressing de-dollarization concerns. aiming to clinch a broader trade and cluding Harley Davidson, said a sec-
Donald Trump’s tariff policies, says The proposed measures include investment deal once president-elect ond official with direct knowledge of
a report by Shriram Mutual Fund. an additional 10 per cent tariff on Donald Trump takes charge, govern- trade issues, citing the 25% to 60%
The report outlined how Trump’s imports from China and 25 per cent ment and industry sources in New tariffs on these products.
proposed tariffs on top US import tariffs on Canada and Mexico. Such Delhi said. With bilateral trade between In-
partners--China, Mexico, and Cana- policies could disrupt trade flows, To tackle Trump’s threat of a dia and the U.S. exceeding $118 bil-
da--could lead to trade diversion, ben- opening avenues for Indian exporters “reciprocal tax” on Indian goods for lion in the 2023/24 fiscal year ending
efiting countries like India. to capture a share of these markets. high tariffs, some officials of the In- in March, and India enjoying a $32
It said, “India can gain from ex- While Trump’s policies could dian commerce ministry are ready to billion trade surplus, the country is
port opportunities as trade disrup- slow global growth and heighten eco- consider cuts on certain products such readying for trade talks with the U.S.,
tions from US tariffs on China, Mex- nomic uncertainty, the report outlined as pork, a senior government source Continued on next page... >>

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