‘Tariff man’ Trump can bring a bagful of surprises. Are you ready?
managed to reduce the gap with Trump. “It is hard to assess Trump as he is disruptive and unpredictable," says Ajay Bisaria, a former diplomat. Unlike in 2016, Trump today has total control over the Republican Party.
He has either won over or vanquished party seniors who challenged him on various policy issues earlier. If he wins, Republicans could control both the Senate and House of Representatives, Bisaria said. That will give him enormous power to frame policies and he could become belligerent, he added.
“There is also another view. While he may campaign from an extreme right-wing position, he will govern more as a centre-right politician," Bisaria further said. Either way, some believe that India need not be apprehensive.
“Our relationship with the US was good during Trump’s first stint as president. We were even quite close to a trade deal," said Sanjeev Sanyal, economist and member, the economic advisory council to the prime minister of India. “Indian companies will see both opportunities and challenges.
We will have to be ready for both," felt R. Dinesh, executive chairman, TVS Supply Chain Solutions, and immediate past-president, Confederation of Indian Industry (CII). What riles Trump the most is the US’ trade deficit, excess of imports over exports (see chart).
It is highest for China at $367 billion in 2022, the period for which latest figures are available. India’s is relatively lower at $46 billion. Trump blames it on predatory trade practices.
To strike back, he has been talking of imposing a flat additional 10% tariff on imports and over 60% on those from China. “It is not clear if the 10% tariff on imports will be selective or across the board. India may see tariffs on steel and aluminium going up," says
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