Trump's agenda may increase duty on clothes, pharma goods...
If the new US administration decides to pursue the 'America First' agenda amid the events of Donald trump becoming the US President, then indian exporters may have to face high custom duty on goods like vehicles, clothes and pharma. Financial experts have expressed this opinion.
Experts said that Trump can also tighten H-1B visa rules, which will affect the cost and growth of indian IT companies. More than 80 percent of India's IT export income comes from America. If there is a change in visa policies, then india becomes sensitive to it. America is India's largest trading partner. India's annual business with America is more than 190 billion dollars.
What do financial and trade experts say?
Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), said that after china, trump can now impose duty on india and other countries as well. trump had earlier called india a 'big duty abuser' and dubbed india a 'tariff king' in october 2020. He said these comments suggest that Trump's second term could bring tough trade negotiations.
Ajay Srivastava said his America First agenda would likely focus on protective measures, such as reciprocal tariffs on indian goods, which could potentially raise barriers to major indian exports such as vehicles, alcohol, textiles and pharma. These increases could make indian products less competitive in the US, affecting revenues in these sectors. However, he said the US' tough stance on china could create new opportunities for indian exporters. Bilateral trade in goods between the two countries was $120 billion in 2023-24, compared to $129.4 billion in 2022-23.
What international trade experts say?
International trade expert Biswajit Dhar said trump would raise tariffs in various sectors and with trump coming to power we are going to enter a different era of protectionism. He said that it could have an impact on sectors like electronics.
He said that as trump has already pulled out of the Trans-Pacific Partnership (TPP), dark clouds may loom over IPEF (Indo-Pacific Economic Framework for Prosperity). This block of 14 countries was launched by the US and other countries of the Indo-Pacific region in tokyo on May 23, 2022. ajay Sahai, director General of the Federation of indian Export Organisations (FIO), said that we can expect trump to press for more balanced trade. But trade disputes may arise over tariffs. Sahai said that given the increasing trend of protectionism, this trend will continue with strict immigration rules.
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