Trump's initial volley of tariffs may fly by India

He pledges higher levy on goods from Canada, Mexico, China

- ASIT RANJAN MISHRA

India could escape the initial wave of tariff hikes pledged by Donald Trump, with the US president-elect announcing plans to impose a 25 percent duty on imports from Canada and Mexico and a 10 percent tariff on Chinese goods.

Trump's return to the White House is expected to bring renewed scrutiny towards India. In October, he described India as the "biggest tariff charger" and threatened to introduce reciprocal tariffs.

During his campaign, Trump floated tariffs ranging from 10 percent to 20 percent on imports across the board, with a particularly steep 60 percent levy on Chinese goods. India, as a major trading partner of the US, could face adjustments that may impact the trade balance, which is in India's favour with a surplus of $35.3 billion in FY24.

On Tuesday, Trump announced that on his first day in office, January 20, he would issue an executive order imposing a 25 percent tariff on all products from Mexico and Canada until both countries address illegal immigration across the border.