India may not be able to export goods to the US. Here’s why.
The US just slapped massive tariffs on Mexico, Canada, and China on Saturday. A 25% tariff on imports from Mexico and Canada. A 10% tariff on Chinese goods. What if India is next?
The Indian government is already preparing a response. Officials are in talks and industries are being warned. They are preparing a list of goods that might attract tariffs.
Our top exports to the US are textiles, electronics, engineering goods, and pharma. These are at the biggest risk. These alone accounted for $46.43 billion in FY24. A tariff hike could hit jobs, businesses, and the economy.
But there is light at the end of the tunnel because:
1. The US has a trade deficit with India of $35.32 billion. Cutting ties with us won’t be easy.
2. Tariffs on China could push US companies to India, opening new opportunities.
3. India is lowering customs duties on key imports, signaling a willingness to cooperate.
Trump once called India’s import duties on Harley Davidson bikes “unacceptable”. Now, we’ve cut them from 50% to 30%.
Is India making the right moves to avoid tariffs? Or is a trade war inevitable?
Let’s discuss in the comments 🤔
PS- I create content to help you become an informed investor. You can follow me here- Aakash Jajoo, SEBI RA
I am on a mission to provide solid, research-backed investment advice to 1 lakh retail investors who are often misled in the markets by the big players with ulterior motives. Visit my website to know more.