TRUMP TARIFFS WEIGH ON INDIA'S TRADE STRATEGY

The Trump administration's tariffs on steel, aluminum, and other goods have forced India to reassess its trade strategies and respond to economic pressures.

- Ruchira Talapatra

The trade policies implemented during President Donald Trump's administration, commonly referred to as "Trump tariffs," have had significant implications for global trade dynamics, including the economic relationship between the United States and India. These tariffs, aimed at protecting U.S. industries and addressing trade imbalances, have influenced various sectors within India, necessitating strategic responses from policymakers and businesses alike.

The Trump administration's trade policies were characterized by the imposition of tariffs on a range of imported goods, including steel, aluminum, and products from countries like China and India. These measures were justified on grounds of national security and the need to rectify perceived unfair trade practices. For India, a key trading partner of the U.S., these tariffs presented both challenges and opportunities, affecting bilateral trade flows and economic strategies.

Prior to the Trump administration, U.S.-India trade relations had been on a trajectory of growth, with both nations benefiting from mutual trade agreements and economic cooperation. However, concerns over trade imbalances and market access issues persisted. The introduction of tariffs by the U.S. marked a shift towards protectionism, prompting India to reassess its trade policies and engagement strategies with the U.S.

DETAILS OF THE TARIFFS

Steel and aluminum tariffs: In 2018, the U.S. imposed tariffs of 25% on steel and 10% on aluminum imports, citing national security concerns. India, being a significant exporter of these metals to the U.S., was directly impacted. The tariffs affected approximately 2.3% of India's trade with the U.S., leading to concerns within India's metal industry.