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Trump Tariff Impact: The implementation of aggressive tariff policy on global trade by US President Donald Trump has increased the possibility of trade war. The US has announced to increase huge tariffs on imported products from China, Canada, Mexico and the European Union, which has also announced that they will also impose anti -anti -US tariffs on the US.
India remains calm so far amidst this global trade unrest, but how long will this situation continue? India may also affect American trade policies, especially on the export of aluminum, steel, automobiles, pharmaceuticals and agricultural products.
Trump’s tariff – Effect on global trade
The current tariff on China increased from 10% to 25%.
Apply 25% tariff on steel imported from Canada and Mexico.
Plan to impose 25% fee on European Union products as well.
Canada, taking retaliation, announced 25% tariff on US products. China also warned of banning US agricultural products. At the same time, the European Union is also preparing for business action against America.
Can India avoid this tariff war?
Actually, India is still left from Trump’s tariff attacks, but this stability cannot remain longer. India’s trade balance has been in comparison with the US in comparison. India is an important market for American companies, which has not implemented aggressive policies on trade. There is no major threat to India’s agricultural product and IT sector at present, but it can change from April 2025. Trump has announced the imposition of “reciprocal tariffs” on many countries including India. Let us know that Indian officials are working on many strategies to avoid American tariffs.
Discussion on tariff cuts
India plans to reduce tariffs on automobiles, pharmaceuticals, agricultural products, chemicals and electronics. The tariff on high-end motorcycles and borbon whiskey was already reduced from 50% to 30%. Discussion on a $ 500 billion trade agreement between India and the US is going on. India’s Commerce Minister Piyush Goyal is meeting American officials to intensify trade talks. India has promised to buy energy and defense equipment from the US. India is trying to strengthen cooperation with the US in the IT and service sector.
Which areas are the biggest threat?
If America increases tariffs on India, then these areas will have the most impact:
automobile industry – America imports many automobile parts from India.
Chemicals and metal industries – Steel and aluminum products may cost 25% tariffs.
Jewelery industry – India’s export of diamond and gold may be affected.
Pharmaceuticals – Sales of Indian drugs in the US market may be affected.
Agricultural products – Shrimp, dairy products and other agricultural exports may have a huge impact.
