Despite a public display of friendship with Indian Prime Minister Narendra Modi, U.S. President Donald Trump is taking a tough stance on trade with India.
Trump has announced plans to impose high tariffs on Indian imports to address the trade deficit, mirroring his earlier actions against China.
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India has long maintained high tariffs on U.S. imports, drawing criticism from Trump. He recently stated that the U.S. would respond with equivalent tariffs on Indian goods, signaling a potential trade war. Analysts warn that such a conflict could harm both nations, but India might face the greater impact.
During his first term, Trump increased tariffs on Indian steel and aluminum, prompting India to retaliate with higher duties on select U.S. products.
This led to India losing its Generalized System of Preferences (GSP) trade benefits. Despite strategic and geopolitical gains in U.S.-India relations, trade tensions have persisted.
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India’s key industries, such as IT services, pharmaceuticals, and textiles, could suffer significantly if the trade conflict escalates.
U.S. remains India’s largest export market, with Indian exports to the U.S. valued at $77.52 billion in the last fiscal year, compared to $42 billion in imports.
Trump’s latest announcement suggests that trade relations may remain strained if he secures a second term.
There is currently considerable political unrest in Canada over tax issues, which may increase in the future.
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Read more: Canada Faces Political Turmoil Amid Trump’s Tariff Announcement and Finance Minister’s Resignation
The move highlights his administration’s focus on reducing trade deficits, even at the cost of alienating key allies like India.
