When he was appointed, US President Donald Trump signed a 25 % tariff on Mexico, 25 % in Canada, and 10 % in China. The tariff was enforced on Saturday, February 1st. Instead, Trump threatens BRICS (Brazil, Russia, India, China, South Africa) with 100 % tariffs when US currencies are replaced as a World Currency.
Trump’s threat, “Round-trip Tax”, may have played a role in promoting exports in India’s Federal Budget 2025-26, presented by Minister of Finance Nirmara Citaraman on Saturday.
“To contribute to 45 % of exports, Micro and SMEs (MSME) will be the second engine,” FM Sitharaman offered a budget.
Citalaman defined the export as the fourth growth engine, and said that it was jointly promoted by the Ministry of Commerce, MSME, and financial ministries.
The goal may not be limited to strengthening MSME and exports of companies, as the Finance Minister offers eight budgets.
In order for Indian industries to continue their business, they must sell and succeed in the United States, and high intake can have a negative effect on it. To deal with it, the Minister of Finance proposed an export promotion mission.
The Ministry of Commerce, MSMe, and finance may be jointly promoted. Export credits, support for borders, and work on overseas markets.
The purpose of the mission is to support the manufacturing department and encourage the expansion to the international market.
Citalaman stated that it would provide support to the manufacturing industry to integrate a global supply chain.
She also stated that a facilitation group consisting of high -ranking and industry representatives would be formed to focus on specific products and supply chains.
India may be preparing for “Trump Challenge” by providing overseas support and incentives to waste issues in the global market.
Trump warning
In December 2024, Donald Trump warned that India was imposing mutual taxes because India had collected “high tariffs” in American products.
Trump’s intention to impose the same tax on Indian products means a potential trade war between India and the United States.
What did Donald Trump say?
According to what he was called “high tariffs” imposed by India for a specific US import, Trump repeatedly intended to impose a direct duty that threatened India.
While talking to the media, Mr. Trump said, “We will impose the same thing in India, what the taxes imposed by India are the same.” He blamed that India was claiming excessive taxes from the United States, saying, “India imposes almost all high tariffs and we forgive them, but this is no longer continuing.” I mentioned.
While answering questions about potential trade contracts with China, Trump commented on countries like India and Brazil, and accused of collecting high tariffs on specific US products. He emphasized the importance of the concept of “mutual” and said, “If they are taxed and we will tax them.”
