US President Donald Trump has pledged to impose reciprocal tariffs on India from April 2, citing high import taxes on American goods. This move could impact India’s key exports to the US, including automobile parts, electronics, and textiles. Indian officials are working to mitigate the impact ahead of the proposed deadline.
US tariffs from April 2? India weighs trade strategy
Edible oil prices are expected to decrease in the April-June quarter due to China’s additional tariff on US soya bean imports, causing a drop in global soya oil prices, which has also influenced the prices of sunflower and palm oil. This may lead to a 4% reduction in oil prices by April.
Falling US cotton prices due to China’s retaliatory tariffs may boost demand for Indian garments, textiles, and yarn. The industry anticipates cheaper US cotton and reduced Chinese competitiveness will help India expand its market share in the US and Europe. Increased imports of superior US cotton could benefit Indian textile manufacturers and exporters, leading to […]
Jewellery exports from Mumbai’s SEEPZ face a potential setback due to US President Trump’s proposed reciprocal tariffs, which could significantly impact India’s $10 billion annual exports to the US. SEEPZ accounts for 85% of India’s diamond-studded jewellery exports to the US, and tariffs could shift US sourcing to countries with lower tariffs, threatening jobs in […]
The United States is urging India to eliminate tariffs on car imports as part of a proposed trade deal, which would pave the way for Tesla’s entry into the market. India, however, is hesitant to reduce tariffs to zero immediately and is consulting with local industries before responding.
India’s connectivity and trade with Central Asia have been enhanced by a shipment from Gujarat using the eastern route of the International North South Transport Corridor (INSTC). The cargo will traverse through Iran, Turkmenistan, and Uzbekistan before reaching Kazakhstan, which highlights the strategic importance of INSTC’s eastern route for trade.
India must secure a robust bilateral trade agreement (BTA) with the US, experts urge, in light of Washington’s recent tariff increases. This is crucial as the US has imposed higher tariffs on imports from Mexico, Canada, and China. Commerce Minister Piyush Goyal is currently addressing these trade issues during his visit to Washington.
Non-tariff measures like the European Union’s carbon tax and deforestation regulations, along with aggressive industrial policies from countries like the USA and UK, are limiting market access for Indian goods. The Indian government is working on schemes to support MSME exporters, with an emphasis on credit facilities and handling non-tariff measures.
The US-India Business Council urges the dismantling of non-tariff barriers and red tape to expedite market access and enhance trade relations between India and the US. With Commerce Minister Piyush Goyal in Washington for talks, the goal is to create a landmark bilateral trade deal to boost economic growth in both countries.
The imposition of high tariffs by the US on imports from China, Mexico, and Canada opens up opportunities for Indian exporters to increase their presence in the American market. Sectors likely to benefit include agriculture, engineering, machine tools, garments, textiles, chemicals, and leather, making Indian goods more competitive against their counterparts.