The new President of the United States, Donald Trump, has now called on countries like India, China, and Brazil, who are the major tariff makers. This has also signalled a potential increase in the tariffs by the USA to the goods which they imported from these countries. Following Trump’s inauguration, he revealed that the main objective will be America First.
With this being said, it is expected that India’s imports to the United States could decline as they are likely to impose higher tariffs. This could majorly affect the textiles and pharmaceutical industry, as most of the exports of such products happen to the United States of America. During 2018, when Donald Trump had his first term, he was able to impose higher tariffs on aluminum and steel, which affected various countries.
This event created trade disputes between India and the USA. As of now, USA and China are the biggest trading partners for India, and particularly, USA plays a critical role in the growth of India with foreign trade. With the rumours of Donald Trump to impose higher tariffs looming around the corner, it could be challenging for India in various aspects.
Concerning this, the Indian Prime Minister Narendra Modi will be meeting Donald Trump at the White House in February 2025. This will further help them to get to a probable solution for the same.
Join our whatsapp group for Latest updates