The sweeping US tariff hikes against China, Mexico, and Canada could make it easier openings Indian exporters, which could provide an excellent opportunity to increase their reach within the American market.Experts believe that the most important sectors, such as agriculture as well as textiles, engineering, chemical and leather–are set to reap the rewards. In the first year of Trump’s presidency, India emerged as the fourth largest winner of Washington’s trade conflict with China and the past could be set to repeat its own story.
The situation is now more dire, with the Trump administration poised to implement new 25% tariffs against imports of Mexico and Canada, as well as a dramatic increase in duty rates to Chinese imports, increasing them to 20%–India is in a position to benefit from the shifting trade dynamic.
The massive tariff increases the US has imposed regarding China, Mexico, and Canada could let the floodgates open in the direction of Indian exporters, providing an excellent opportunity to expand their presence within America. American market.
Experts believe that key industries, including the engineering and agriculture industries, textiles and leather–are set to benefit from the changes. In the first year of Trump’s presidency, India emerged as the fourth-largest beneficiary of the trading war against China and the past could be set to repeat its own story.
Experts have said that the key sectors, such as textiles, engineering, agriculture and leather–are set to benefit from the changes. In the first year of Trump’s presidency, India emerged as the fourth largest winner of Washington’s trading war against China and the past could be set to repeat its own story.
With the Trump administration preparing to impose new tariffs of 25% for imports coming from Mexico and Canada, as well as a dramatic increase in duty rates to Chinese imports, increasing them to 20% — India is in a position to benefit from the shifting trade dynamic.
According to the think-tank GTRI the new trade barriers provide India with the opportunity to explore other sources of supply, specifically from Canada as key items are now offered at a lower cost according to the new agency PTI said.
GTRI said that the growing severity of trade tensions may benefit India through increased exports as well as American investment flows. Srivastava pointed out that in his first period in office, Trump replaced NAFTA with USMCA in the year 2018-19 in response to concerns over the outdated rules and negative effects on American workers.
“Now, he is again unhappy with his own deal and has imposed 25 per cent tariffs on Canada and Mexico starting today, violating USMCA’s terms. This highlights his disregard for negotiated trade agreements. To avoid a similar situation, India should be cautious about negotiating a comprehensive FTA with the US,” He continued.
“Worse, at the negotiating table, the US may demand India not just tariff cuts but also additional concessions, such as opening government procurement, reducing agricultural subsidies, weakening patent protection, and allowing unrestricted data flows, demands India has resisted for decades,” the official added.
Instead of seeking an all-encompassing Free Trade Agreement (FTA), Srivastava suggested that India might consider the idea of a “Zero-for-Zero Tariff” arrangement.
In this agreement, India would agree to remove tariffs on a broad variety of US industrial products – subject to that Washington responds by removing taxes to Indian exports.
