North India Statesman
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Budget 2025: After Donald Trump took over the US President, there are speculations of major changes in global trade. Its biggest impact can be seen as a reduction in tariffs on American products. It will be difficult for India to stay away from this trend and it is also possible that India also reduce tariffs on some expensive goods imported from America.
In fact, while the US will benefit more as more exports than this, Indians will have to pay less for some imported goods. It is expected that Finance Minister Nirmala Sitharaman may announce these cuttings on American goods in her budget speech on 1 February.
America India’s largest trading partner
Its expectations that are expected to reduce tariffs include steel, high quality motorcycles and electronic goods. Trump recently threatened to impose high tariffs on countries like India, China and Brazil at an event in Florida. America is the largest trading partner in India and can reduce India’s exports with high tariffs there.
The trade between the two countries in 2023-24 will be more than $ 118 billion, with India’s trade surplus $ 41 billion. India does more than 17 percent of foreign trade with the United States. America is the largest buyer of Indian agricultural products including fruits and vegetables. In 2024, the United States will also import 18 million tonnes of rice from India. But the US is angry because India has imposed more than 100 percent tariffs on about 20 items imported from the US.
Tariffs control exports and imports!
Let us tell you that the countries regulate business with each other by increasing or reducing the tariffs on products exported from other countries. Countries try to increase sales of domestic goods by imposing high duty on imported goods and keeping their prices low. But to ensure that tariffs are not put beyond a certain range, all countries interact with the World Trade Organization and determine a bound rate. Now that the US is creating trade surplus for many countries, it also wants the countries that export more goods to the US, they open their doors by reducing tariffs on American products.
Worried about BRICS tariff!
During the election campaign, Trump threatened to impose 100 percent tariffs on BRICS countries. He said that if BRICS makes a new currency in place of US dollars for country trade, they will have to face 100 percent tariff on exports to the US. India, Brazil and China are members of the three BRICs. In such a situation, if the US imposes 100 percent tariff, then Indian products will be sold in American markets at double the price, which can reduce their demand among the American public.
