Trump's tariff war: How India might avert damage
Subscribe to enjoy similar stories. New Delhi: India is preparing an action plan to steer clear of a potential trade war with the US, two people aware of the matter said. The development comes in the backdrop of a tariff war erupting between the US and Mexico, Canada and China, with tariffs and retaliatory tariffs being traded blow for blow.
On Saturday, US president Donald Trump imposed 25% tariff on imports from Mexico and Canada (energy products from Canada would attract 10% tariff), and 10% tariff on imports from China. In retaliation, Mexico and Canada swiftly counter-imposed an identical 25% tariff on imports from the US the same day. The Indian government is expected to unveil a full-fledged response plan in the coming months depending on the decisions of the US government, the two persons cited above said on condition of anonymity.
“Inter-ministerial discussions are underway to prepare a list of goods that may attract US tariffs," said the first person mentioned above. “Sensitisation of the industry about the same is also underway." As the world’s fifth-largest economy, India is keen to avoid tariff hikes particularly on exports of garments, electronic goods, engineering products, and drugs and pharmaceuticals, among others, the two people said. Also read | India looks to boost air cargo amid Red Sea trade disruptions As per commerce ministry data, the combined export value of these four categories to the US rose from $38.84 billion in FY22 to $46.43 billion in FY24.
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