Former US President Donald Trump has issued a warning to India, suggesting the possibility of increased tariffs on Indian goods. This action is a response to India’s continued acquisition of Russian oil, a practice that runs contrary to the US position on limiting the import of Russian resources. Trump’s commentary, made via Truth Social, expressed concern that India is not only buying Russian oil but also reselling it in the open market for a profit. The situation could lead to significant changes in trade dynamics. The impending tariff hikes are expected to impact a range of different supply chains, potentially leading to a decline in Indian exports. India’s exports to the US are projected to decrease by nearly 30 per cent, according to the Global Trade Research Initiative (GTRI). Labor-intensive industries are expected to suffer the most. The GTRI report emphasizes that these tariffs will create an unfavorable trade environment for India, particularly compared to its regional trade competitors. The GTRI has proposed a five-point plan to help Indian businesses navigate the new environment, including providing financial relief to MSMEs and streamlining the onboarding process for new exporters.
