By Admin 
Trump Tariff: One year of the second term of US President Donald Trump is about to be completed. Ever since Trump came to power in America for the second time, he is seen continuously announcing tariffs against some country or the other every other day. In this sequence, Trump has also spared his big trading partner like India.
Fear of imposing 575 percent tariff on India
At present, 50 percent tariff is imposed on India, but if India continues to purchase oil from Russia, it can be increased to 500 percent. Similarly, if India maintains trade relations with Iran, a separate tariff of 25 percent may be imposed. This means that at present India is facing the threat of 575 percent tariff.
Due to these new orders of Trump, trade and diplomatic relations between the two countries have deteriorated. However, this same change forced India to realign its trade strategy, diversify export markets, strengthen ties beyond the US, and protect its economy from unilateral trade shocks.
India took another path
India’s latest trade data shows that the country’s economy is performing better than expectations. Trade data for December showed strength in exports. After Trump’s imposition of tariffs, India started exploring opportunities in non-US markets like West Asia, Africa, Europe and China. As a result, exports to China increased by 67 percent to $ 2 billion in December, while goods sent to America, India’s largest export market, declined by 1.8 percent to $ 6.8 billion.
India changed the game
It is the result of pressure from America that India insisted on strengthening trade relations with other countries. India has signed free trade agreements and economic partnerships with other countries like UAE, Australia, Oman, UK. The long pending trade deal with the European Union is also now close to being finalized. Due to this trade deal, 99 percent of India’s products will get free access to UK markets. At the same time, 99 percent of UK goods can be imported into India with a nominal tariff of 3 percent.
India has also increased engagement with Latin America and Africa and has positioned itself as an alternative manufacturing and sourcing hub amid changes in the global supply chain.
Also read:
These 12 people have more wealth than half the world’s population, there are many powerful names in the list