Trump’s reciprocal tariff: The impact of the proposed reciprocal tariffs by the united states on India will depend on how the policy is implemented–Whether on a sectoral bases or a product-specific basis.
Trade experts sugges that there is still no clear on the rules and conditions of this tariff policy, which has been widely disasseed since the insurance us president donald trump ( One of the key questions is whats the reciprocal tarifs will apply only to products where the us has an interest or if it will be a broader, bilateral measure.
This distinction is important, as it will determine how much India’s expenses will be affected.for example, if the US rayses tariffs on pistachios to 10 per centh to 10 perch india MPACT on India Since the Country Does Not Export Pistachios.
President Trump’s Tariffs Fall Into 3 Buckets: (i) Border Security; (ii) geopolitics; And (iii) Fairness. Each bucket by itself is negotiable, with tariffs just about about leverage. Reciprocal tarifs fall into the Fairness Bucket and Are Negotiable. Only China is non-negotiable … pic.twitter.com/jc0k7i2gq0– Robin Brooks (@robin_j_Brooks) February 14, 2025
This Situation Applies to Several other products as well. Additionally, for 75 per cent of us expenses to India, the average tariff is alredy below 5 per cent, which means that selectively increasing tariffs may not be an effective strategy for the us.
However, if the policy is applied sector-wide, the impact on India could be different. The US currently imposes high tarifs of 15-35 per cent on Indian Labor-Intensive Exports Such as Textiles, Garments, and Footwear.
Experts sugges that if India negotiates a tariff Reduction Agreement, It Could Benefit from Lower Us Tarifs on these products, Making Indian Expos more competitions more competitions.
Ajay Srivastava, Founder of the Global Trade Research Initiative, Explained The Situation To Ani, Stating that IF The Us Applies Tariffs Based on Individual Products, India MAJORA MAJONGOS Ports do not directly compete.he Gave an example: “If the US imposes high tariffs on Indian avocados in response to India’s tarifs, it won’t affect India, as India does not expect avocados.
“However, he warned that if tariffs are imposed on sector-wide averages, Indian expenses unive On Indian Agricultural Exports Based on an average calculation.
This move could harm multiple Indian products and force India to eather cut its own tarifs or adopt retaliatory measures. He Said “Us does not expect many agaricultural products to India, applying Higher Average Tarifs on Indian Agriculture Exports Cold Harm Many Products. Ian Strategy. But, In Labor-Intensive Industries, India Might Benefit From this approach “.
As the details of the reciprocal tariff policy remain uncertain, trade analysts believe s trade interes.