Today, US President Donald Trump is going to break the bomb from worldwide i.e. from April 2. Prior to that, he has made a shocking claim that India will reduce the tariffs on American imports to a great extent. This statement has come at a time when they are going to declare Risiprockle tariffs for the world within just 24 hours, which can affect many countries including America.
But India has adopted the strategy of ‘Weight and Watch’ on ‘counter -tariff’ to be declared by Donald Trump on Wednesday. Compared to other major economies, India has decided to analyze the first possible effects, adopting a balanced approach. There has been a stir in the global trade world over the ‘Mukti Divas Tariff’ to be declared by the Trump administration on 2 April. This important announcement will be made at 4 pm on Wednesday (early hours in India) according to US time. Trump had claimed on Monday that under the pressure of his policies, many countries including India would be forced to cut their tariffs big.
India’s Plan A, B, C
India has already cut tariffs on some products, including motorcycles and American Borbone Whiskey, in an attempt to keep business relations stronger with the US. According to a report by Reuters, India has also offered to reduce import duty on some agricultural products, but in return it has demanded exemption in the US Sericiprochl tariff.
Indian policy-makers are now analyzing the impact of Trump’s possible trade policies and working on three major plans (Plan A, B and C).
Plan A: Diplomatic talks and trade agreements
India’s primary strategy will be that business relations should be maintained through diplomatic dialogue with the Trump administration. The government can negotiate a new trade agreement with the US so that Indian exporters are not harmed.
Plan B: Exemption of export
If the Trump administration puts an elevated tariff on Indian products, India can turn to other markets. Work is being worked on a strategy to increase exports with new trade partners like Europe, South Asia and Latin America.
Plan C: Reply on imports
India can also consider putting a counter-tariff on products coming from the US to maintain its import-export balance. This will promote domestic industries and Indian companies will get a competitive increase.
Which areas will affect?
Trump’s tariff policy can mainly affect textile, pharma, IT services and automobile sectors. America is a large market for Indian IT and pharma products, in such a situation, the government can consider giving policy relaxation for companies.
Economists believe that if the Trump administration increases import duty, it can make it expensive for Indian companies to do business in America. However, this effect can be reduced by India’s strong domestic demand and expansion policy of export market. The Government of India is now deeply considering the matter and is ready for any possible challenge.