Trump has no choice but to move towards India – Tariffs on some goods have not been increased due to fear of public anger
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Amidst tariff tension, America will buy these things only from India, Trump has no other option!
America will buy a lot of things from India even after the tariff, which is its compulsion. Because these are such products, if tariff is imposed on them, then the anger of the American people can increase.
America has imposed 50% tariff on India, due to which India’s textile and seafood sectors have been affected. Some companies have even stopped production in places like Surat, Noida and Tirupur. Experts are even estimating that the Trump tariff can affect India’s growth by 0.3 to 0.5%. Also, India’s US exports can decrease by 70% i.e. up to 55 billion dollars.
However, amidst all this, America is going to buy some goods from India in large numbers, because America has no other option except buying from India. If America buys these things from places other than India, then it will have to pay more cost to import. Also, no other country can supply these goods cheaply as per American needs.
Perhaps this is the reason why US President Donald Trump has not imposed tariff on these items or has kept only the basic tariff of 25%. These items are still being exported to America as before.
Which items are exempted from tariff?
The Indian products that have been exempted from tariff by the US include pharma sectors (medicines and equipment), electronics (smartphones and electronics products), energy-efficient and renewable products like petroleum etc. On the other hand, only 25% tariff has been imposed on some products, which include iron-lead, aluminium, copper and their outputs etc.
Why is the US not imposing tariff on these items?
Pharmaceuticals: India is the largest supplier of generic medicines and the US healthcare system is highly dependent on cheap Indian medicines. If 50% tariff is imposed on this sector, then medicines will become expensive, which will increase political pressure and public resentment in the US. Smartphones and electronics: A large part of the supply chain of Apple, Samsung and other companies in the US market has shifted to India. After moving away from China, these companies are increasing their production in India itself. If tariffs are imposed on these things, smartphones and electronics will become expensive for American consumers. Not only this, the sales of American companies will also be affected. At the same time, to compete with China, America wants to make India a manufacturing hub, due to which this sector has been exempted from tariffs. Energy and renewable products: America also needs exports related to Indian petroleum and renewable energy sectors. Imposing tariffs on energy will affect American industry and energy security. Strategic and political reasons: America sees India not only as a trade partner, but also as a strategic partner. Especially to balance the growing influence of China in Asia.
