US Tariff War / Donald Trump has used the tariff weapon, is India ready to bear it?

US Tariff War: US President Donald Trump announced a 26% tariff on goods imported from India, which is higher than the European Union, Japan and South Korea. This move adds a new tension to India-US trade relations. Trump clarified that despite his good personal relations with Prime Minister Narendra Modi, this decision has been taken to protect the interests of America.

Reason for tariff dispute

Regarding the high tariff imposed on India, the Trump administration says that India levies high taxes on American products, which harms American companies. For example, India imposes heavy taxes on American whiskey and Harley-Davidson motorcycles. At the same time, India has made many changes in its tariff system and has also reduced taxes on American exports, but the Trump administration is not satisfied with this.

Impact on Indian economy

The increase in US tariffs may hit many export sectors of India. Textiles, electronics, engineering products and gems and jewellery industries may be particularly affected.

Experts believe that:

Indian exports may become competitively weak.

Investor confidence may decline.

Trade imbalance with the US may increase.

However, according to some reports, this impact may be partially mitigated by India's trade approach and diversification strategies.

Trade deal and future prospects

India and the US have set a target of taking bilateral trade to $500 billion by 2030. But the Trump administration's tariff decision has made this plan challenging.

Amid the tariff dispute, India will continue trade talks with the US and try to secure its exports through new strategies.