Tariff War / Will Trump be able to impose 'tariff crop'? Sugar, meat, alcohol will be affected!

Tariff War: The 'reciprocal tariffs' announced by US President Donald Trump have created a stir in the global trade world. India, which has close trade relations with the US, is assessing the effects of these tariffs. According to experts, these tariffs may have the greatest impact on Indian agricultural and food products, which may harm Indian exporters.

US Tariffs: New Strategy to Balance Trade?

The purpose of imposing new tariffs by the US is to balance the competition of imported products in its market. The US government believes that these steps are necessary to remove the existing trade imbalance. India's agricultural products, especially wine, meat, sugar, and seafood, may be more affected by these policies.

India-US Agricultural Trade: Imbalances and Disputes

Every year, trade between India and the US is more than Rs 17 lakh crore, of which India exports Rs 9 lakh crore to the US. In terms of agricultural trade, India exports products worth about Rs 43,000 crore to the US every year, while the US sends agricultural products worth only Rs 13,760 crore to India.

US agricultural products receive heavy subsidies, allowing them to enter the Indian market at cheaper prices. Agriculture in India is the main source of livelihood for about 70 crore people. If US agricultural products gain easy access to the Indian market, it could adversely affect the income of Indian farmers.

Which sectors will be most affected?

• Alcohol: Indian whisky and other alcoholic beverages are popular in the US, but the new tariffs could increase their prices.
• Meat: Indian meat, especially goat and sheep meat, is exported to the US. Higher tariffs could affect its demand.
• Sugar: The US is a major importer of Indian sugar. An increase in tariffs will hurt exporters.
• Seafood: Indian marine products, such as prawns and fish, are popular in the US market, but an increase in tariffs could reduce competitiveness.
• Spices, tea and coffee: Agricultural products such as Indian spices, tea, and coffee may also be affected by tariff hikes.

India's strategy: Seeking a balanced solution

India has said it will adopt a balanced strategy to deal with this trade challenge. The government has indicated that it will take necessary steps to protect the interests of local farmers and producers. Also, these issues are being discussed in depth in the trade talks between India and the US.