📍India is ranked 9th in terms of export deficit (nations which export more than they import from US).
📍 The deficit for US is approx. 3.6% ( imports in US by India is this much more than US exports to India).
📍US has put a 25% each tariff for Canada and Mexico(a ₹100 product sent from them will have a ₹25 tax which has to be payed by the exporter) similarly China with 10% tariff.
📍The Canada and Mexico tariff(starting 4th) have been paused for next 30 days and China’s tariff will start from 10th Feb.
📍China though is the largest exporter to the US but has only 10% tariffs because it’s so deep in products that higher tariffs on Chinese products could effect inflation in US.
📍China has also imposed a retalitary tariff on US as high as 15% on coal, crude, large EV’s(Tesla cyber truck) and has initiated a monopoly investigation on “Google”.
What’s in it for India
☘️ Electronics being the highest of exports category from China can be dainted, We already have a PLI scheme running and mobile phone manufacturing infra being upgraded from last couple years, This can be a bolster for the mobile industry.
☘️ India in the budget has cut down on taxes for American made motorcycles this was done earlier(last Trump regime) also and now has been further slashed.
☘️ Modi is to meet Trump this month, They can finalize a trade deal. Both sides have shown hints(US not putting India on tariffs)