With a 25 % tariff in Canada and Mexico, 10 % of the valid duties in China from Tuesday, US President Donald Trump has begun to promise protectionist trade policy and fresh with the Top 3 trade partners in the United States. It caused a trade war. The biggest contributor in the trade deficit nearly $ 1 trillion.
Despite repeated criticism of India’s tariff structure, India did not mention Trump’s first presidential order on February 1, imposing trade tariffs. Late this month, when Prime Minister Narendra Modi is planning to visit the United States, it may indicate that the two -country trade negotiations may be on the card.
International trade experts have stated that India has begun to reduce tariffs to support US exports to avoid Trump tariffs. The duty of items exported by the United States, such as motorcycles with engine capacity less than 1,600cc, satellite ground installation, and essence of synthetic fragrances, has been reduced by the association budget 2025-26 presented on Saturday.
Exports, on the other hand, have stated that the current 10 % tariffs on Chinese products will create opportunities for more Indian products to enter the US market. According to Oxford economics analysis, India was the fourth beneficiary of Trump’s trade -off between 2017 and 2023 after Trump began a tariff war with China in his first term.
“US tariffs on China will have a significant impact. South Korea and Japan’s major parts and component suppliers are also affected, but India has faced duties in the US market. It is advantageous at this time to reduce competitiveness, “said Ajaishai, the Director of the Indian Export League (FIEO).
“There is an increasing concern that US and many other countries can increase tariffs, and are encouraging to leave China. We own a factory in both India and China. One of the exporters has begun to receive large -scale orders in India than China’s risks for the risks of Chinese supply chains. Sahai added.
However, since the United States is the largest trade partner in India and most importantly, the trade war that drives inflation in the US market may not be the benefit of India. Canadian Prime Minister Justin Toldo announced on Sunday a 25 % retaliation tax on American products, such as beer, wine, home appliances, and sports equipment.
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In response to Trump tariffs, China said that it was solid, consistent, and one -sided hiking was strictly violating the WTO rules. “This movement cannot solve the US problem at home, and even more important, it does not make a profit on both sides and does not make much profit to the world yet,” said China. I mentioned.
Mexico’s President Claudia Symbaum ordered retaliation tariffs on Saturday, in response to US decisions to make 25 % tariffs on all products coming from Mexico. Sheinbaum said in a social media posting that her government had called for dialogue instead of conflicts, but Mexico had to respond.
Message from union budget
AJAY SRIVASTAVA, a former trade manager and head of the think tank GTRI, stated that the union budget has introduced a significant reduction in tariffs on multiple products. In the major tariff reduction, India has reduced the obligation of fish in water for manufacturing aquatic feed from 15 % to 5 %. This is a movement that directly affects US exports worth $ 35 million. SRIVastava said another prominent reduction in tariffs affecting the Ethernet switch, which has been reduced from 20 % to 10 % of duties.
“In the case of a car sector, India reduced the tariff of the motorcycle based on the capacity of the engine. In the case of motorcycles with an engine capacity of less than 1,600cc, tariffs have been reduced from 50 % to 40 %, but 1,600cc of 1,600cc. In the case of exceeding motorcycles, the US exports to the US motorcycle were reduced by $ 3 million in 2004. He said it could be useful, “he said.
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India: Ninth contributor to US trade deficit
Trump has announced tariffs based on the International Emergency Emergency Economic Law (IEPA) to stop “illegal immigrants” and stop “toxic Fentanyl and other drugs” to the United States. It was based on the size of the US trade deficit.
According to research and information systems (RIS), China is the largest trade deficit in the United States with a 30 % overall share. Mexico and Canada have 19 % and 14.5 % of them, respectively, holding the second and third positions. In 2023, China had a 317 billion -dollar trade surplus with the United States, but Mexico and Canada’s surplus was $ 200 billion and $ 153 billion.
India has contributed only 3.2 % of the US trade deficit in the United States, and is the ninth contributor. As a result, India may be at the top of Trump’s tariff list, but trade policy researchers suggest that India may be vulnerable to specific finished product categories, especially pharmaceutical exports. Masu.
The jewel and jewelry sector followed by the pharmaceutical gates are the largest trade segments that India enjoys a considerable trade surplus. Pharmaceutical products consisted of 21.9 % share of $ 20 billion exported to the United States in 2023 in the United States. The second and third spots were occupied.
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RIS pointed out that a new US trade system can target several high -value items, especially from drugs, fisheries and jewelry sector. If you use a wide range of approach restrictions, segments such as chemical products, composed fabrics, and wood pulp may be scrutinized.
