India's exports may benefit from Trump's tariffs on China, Mexico and Canada: Report

India did not appear on this first round of Trump tariff measures despite Trump having called India a tariff abuser

Published on: Nov 29, 2024, 14:47:58 IST

By HT News Desk

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India has the opportunity of increasing its exports in textiles, electronics, machinery and pharmaceuticals due to the US potentially imposing higher tariffs on products from China and Mexico, Money Control reported.

The US is India's largest trading partner, with total annual trade worth more than $190 billion. (ANI)

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US President-elect Donald Trump announced on Monday that he would sign an executive order on January 20, imposing 25% additional tariffs on all imports from Canada and Mexico, as well as an additional 10% tariff on imports from China.

Donald Trump reasoned the tariffs on Canada and Mexico as a means to curb migrant inflows and the tariffs on China as a means to stop drugs like Fentanyl coming to the US from there.

However, India did not appear in this first round of Donald Trump's tariff measures, despite Trump calling India a tariff abuser. The US is India's largest trading partner, with an annual trade worth over $190 billion.

“Exclusion from the tariffs may signal a strategic interest by the US to deepen trade ties with India," the report quoted Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO) as saying. “This could pave the way for favourable trade agreements and collaborations.”

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However, not all experts are too optimistic.

The report quoted Ajay Srivastava, founder of think tank Global Trade Research Initiative as saying that “Trump’s trade policies may be wider. This announcement is linked to the drug and immigration situation and other steps may come separately. India should be on a wait and watch mode.”

Similarly, Philippe Varin, the chair of the International Chamber of Commerce had said that India may only gain in the short run if the incoming Trump-led government levies relatively steeper duties on China and that any tariff war between Washington DC and Beijing could adversely impact global trade as a whole in the medium term.

Yet another risk is that retaliatory measures from China, such as changing domestic policies like reducing export tax waivers, can harm India's solar industry, which relies on imports from China for 80% of itscomponents.

Funnily, more than 97% of India's solar panel exports goes to the US.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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