Will Trump's tariffs hurt India? NITI Aayog CEO responds
What's the story
NITI Aayog CEO BVR Subrahmanyam has said US President-elect Donald Trump's proposed high tariffs on China, Mexico and Canada could provide India with huge export opportunities. He stressed these tariff changes would lead to trade disruptions, and India could benefit if it is prepared to grab these opportunities. "Whatever Trump has announced so far... I think there are opportunities for India," Subrahmanyam told reporters.
Tariff details
Trump's tariff plan includes 25% duty on imports
Trump has promised to impose a 25% tariff on imports from Mexico and Canada, and an additional 10% on China. Subrahmanyam believes these changes could cause major disruptions in US trade, opening "huge" opportunities for India. "The question is if we actually prepare ourselves, it can lead to a massive boom... because there is going to be trade diversion," he added.
Trade relationship
US is India's largest trading partner
The US is India's largest trading partner, with exports worth $77.51 billion and imports worth $42.2 billion in the last fiscal. The US also accounts for 70% of India's IT export revenue. Subrahmanyam emphasized that the relationship between the two countries goes beyond trade, and other dimensions will be taken into consideration in light of these possible changes.
Currency concerns
Trump's tariff threats and India's stance on Dollar usage
During his election campaign, Trump had called India an "abuser" of import tariffs and cautioned BRICS countries against supplanting the US Dollar as their main trading currency. Following this, External Affairs Minister S Jaishankar had clarified India's stance against de-dollarization during his October 1 visit to the Carnegie Endowment for International Peace in Washington. "You have us confused with someone else. We have never actively targeted the dollar," he said.