US President-elect Donald Trump has once again threatened to impose reciprocal taxes on India. He is concerned that India is imposing high tariffs on some American products. So, in return, he is determined to impose high tariffs on Indian products.
Trump and Indian Prime Minister Modi have been able to maintain good relations between America & India in the past. Even now, Trump is all praises for PM Modi but he thinks India is a very big charger. And, he wants to follow “Tit for Tat”, when it comes to imposing tariffs on India.
Commerce Secretary Backs Donald Trump
Next Commerce Secretary Howard Lutnick has supported statements made by Donald Trump. He said that Reciprocity will be a major topic under the Trump administration. You treat us the way you want to be treated.
Trump, in his first term, imposed higher taxes on Indian steel & aluminum, to which India reacted by imposing higher taxes on American products like almonds & apples. Such trade tensions can arise also in his second term if Trump decides to increase tariffs further on Indian products.
Trump’s proposed tariffs on countries like China, Mexico, and Canada, are also quite high. This could create an opportunity for India if their trade market redirects to India. Let’s hope that Trump’s new term brings new trading opportunities for India, as Trump is regarded as a friend of Modi’s government.
