Tariff on India: It is estimated that the tariff rate on India could be between 10 to 20 percent after a trade deal with the United States. It is believed that President Trump will not impose a higher tariff.
US President Donald Trump has once again unleashed a barrage of tariffs on several countries worldwide. After imposing heavy tariffs on Brazil and then Canada, a significant indication has now been given regarding India.
Trump has clarified that the US may impose tariffs of 15 to 20 percent on trading partners like India, but there is no scope for higher tariffs. This statement comes at a time when the final round of talks is underway between India and the US regarding a trade deal.
35 Percent Tariff Announced on Canada
The Trump administration announced a 35 percent tariff on Canada last night. Explaining the reason, Trump said that this decision was taken due to Canada's trade policy and its failure to curb the fentanyl crisis.
In his letter, Trump also warned that if any Canadian company sends products to the US through a third country, this tariff will also be applicable to it. These tariffs will be implemented from August 1st.
Regarding India, Trump did not give a direct statement, but he indicated that the countries that are trading partners of the US would not face tariffs exceeding 15 to 20 percent.
India Will Not Face Tariffs Like China and Bangladesh
Trump's indications make it clear that India will not have to face the strict tariff policy like China and Bangladesh. The US has imposed an average of 51 percent tariffs on China and 35 percent on Bangladesh.
This directly implies that the US still considers India a reliable trading partner, and its policy is likely to remain comparatively lenient.
What Are India's Demands?
Two major demands have been put forward by India to the US:
- The tariff should be kept at 10 percent or less so that Indian products can remain competitive in the global market.
- Access to the US market should be given to Indian small traders and MSMEs so that exports can increase and employment opportunities can be created.
Talks on both these points are still ongoing, and no agreement has been reached yet.
What Do the Export-Import Figures Say?
Trade relations between India and the US are continuously increasing.
- In the financial year 2022-23, India exported goods worth ₹6.84 lakh crore to the US.
- In 2023-24, this figure stood at ₹6.75 lakh crore.
- In the same period, India imported goods worth ₹4.43 lakh crore from the US in 2022-23.
- Imports decreased to ₹3.67 lakh crore in 2023-24.
This makes it clear that India's exports to the US are increasing, and imports have decreased.
What Does Trump's Indication Show?
Trump has made it clear that the tariff limit for countries that are trading partners of the US could be up to 20 percent.
This is a relief for India because, if a deal is reached, India will not have to face a harsh policy like Bangladesh or China.
