The US announced the suspension of additional rates on India for 90 days to July 9 this year, according to the White House executive orders. On April 2, US President Donald Trump slapped universal duties on about 60 countries exporting goods to America and additional steep charges on countries such as India. Rates are a key instrument in global trade fights. Countries set rates on imports to protect their local industries, but these measures may have ripple effects on economies worldwide. A tariff is a tax imposed by a country on imported goods. Higher rates make foreign products more expensive, which may reduce their demand. For example, if the US imposes a 25% tariff on Indian steel, Indian exporters may lose price competitiveness in the US market. India’s most important trading partners: India’s economy thrives on trade. Here is a look at our top trading partners (FY 2023-24): Top Input Sources: China (15%) USA (8%) UAE (7%) Top Export destinations: vs (17%) UAE (6%) China (5%) India to the US: a trading-to-the-service trading in recent years, 2023): $ 128 billion • $ 78 billion • US imports: Rate $ 50 billion Tariff Fights: The US removed India from its GSP (generalized system of preferences) in 2019, which affected $ 5.6 billion to exports. Impact on different sectors in India IT and software costs outsourcing due to visa and tax barriers. Pharma – Export challenges in the US market. Textiles reduce the demand and work impact Auto higher production costs due to steel/aluminum rates. Agricultural. Farmers were hit by lower exports how Indian businesses Tata Steel, JSW Steel -Cher Tariffs on Exports Sun Pharma, Dr. Reddy’s competition in Generic, affected. Raymond, Arvind Ltd. Textiles facing prizes. Maruti, Tata Motors – Input costs affecting motor prices. ITC, Britannia – Food & Agri exports affected. How India exports the diversification of the diversification of diversification – expanding to Europe, Africa and Asean. Trade agreements – a partnership with the UAE, UK and other countries. Strengthening domestic manufacturing – PLI schemes for electronics, textiles and cars. Negotiations India and the US are working on tariff reduction. India’s tariff policy towards US machinery: 6.6% versus 1.3% agriculture: 37.7% versus 5.3% Iron & Steel: 4.5% versus 2% Auto sector: 24.1% versus 1% plastic and articles: 9.9% versus 4.4% which it means to investors • Short -term risks – uncertainty in global trading policies. • Long-term profit shift to self-confidence (Atmanirbhar Bharat). • Investment opportunities – sectors such as EVs, defense and local manufacturing advantage. First published: 12 Apr 2025, 08:16 pm ist
Trump rates: Can India navigate the global tariff war? Impact on key partners-here is a 5-point analysis | Mint
