Recent statement of the former US president Donald Trump on India has set alarm bells ringing at offices of Indian hierarchy. Trump’s latest statement has risen eyebrows that India may face higher trade tariffs if he is voted to power in the upcoming US elections which is slated to hit the floors on November 5, 2024.
US-India Bilateral Trade
The US was India’s largest trading partner in the financial year 2023-2024 (FY24). America has remained India’s top trading partner right from from FY22. The total bilateral trade between the two countries reached nearly $120 billion in FY24.
What did Trump exactly say?
The Republican presidential nominee during a recent campaign in Michigan had said that India is a very big abuser of trade relationships with the US. Albeit, he immediately minced his words and covered it up and stated that India’s Prime Minister Narendra Modi is a fantastic man and they both share cordial relationship.
Subsequently, he also announced that he would meet Modi in US next week. Albeit, India Government’s Ministry of External Affairs (MEA) hasn’t yet officially confirmed Modi- Trump meet up during former’s US tour which is slated to start from September 21, 2024 and conclude on September 23, 2024. Modi will attend the fourth Quad Leader’s summit in Wilmington.
Trump repeating his own words!
During his regime as US president, Trump had openly said on various occasions that India had been a tariff king. Every time he said this he meant that India had levied higher tariff on US imports but enjoyed lower duties on good and services exported to the US. Infact, the US is the only major economy with which India enjoys trade surplus.
On recent stance taken by various countries to drift away from international trade in US Dollars (and rather in their own currencies), Trump vowed to increase tariffs on such nations including India.
What does US Poll Predictions say?
Albeit, as per poll predictions, Trump’s counterpart, the Democratic presidential candidate Kamala Harris so far enjoys upper hand. According to recent Reuter’s poll, the latter is leading the former by 47% in the upcoming US presidential elections. Polls conducted by USA polls had similar findings.
So, it’s a sigh of relief so far for India’s hierarchy. But, it Trump is voted to power, then, things will not be that easy for administrators.
