The U.S. authorities’s transfer to impose reciprocal tariffs to match increased duties levied by its buying and selling companions just isn’t prone to damage India a lot as there are variations within the export profiles of the 2 nations, financial suppose tank GTRI mentioned on Friday (February 14, 2025).
Citing an instance, the International Commerce Analysis Initiative (GTRI) mentioned that if the U.S. prices 50% reciprocal tariffs on Indian pistachios as a result of India prices the identical, India is completely happy because it doesn’t export pistachios.
Moreover, for 75% worth of the U.S. exports to India, the typical tariff is lower than 5%, GTRI Founder Ajay Srivastava mentioned.
In distinction, India faces excessive U.S. tariffs on many labour-intensive items like textiles, clothes, and footwear, ranging between 15-35% on a number of merchandise, he added.
“Given the variations within the export profiles of the 2 nations, reciprocal tariffs might not have a big affect…Within the new Trump period, India might wait to see the US determination in April on reciprocal tariffs after which reply in equal measures as we did in June 2019,” Mr. Srivastava mentioned.
After talks with Prime Minister Narendra Modi in Washington, U.S. President Donald Trump introduced that India will purchase extra oil, gasoline and army {hardware} from America to carry down the commerce deficit however asserted that Washington won’t spare New Delhi from reciprocal tariffs.
On the commerce deal, he mentioned although the main points usually are not but clear, it could possibly be a restricted deal on reciprocal tariffs, anticipated to be introduced in April.
The U.S. has already introduced non-reciprocal tariffs of 25% on metal and aluminium.
“That is additionally not the most effective time for an FTA (free commerce settlement) or full commerce settlement because the U.S. doesn’t respect FTAs. An instance is how the Trump administration has imposed tariffs on Mexico and Canada on metal and aluminium in violation of USMCA (US Mexico Canada) provisions,” Mr. Srivastava mentioned.
The GTRI additionally mentioned that the U.S. just isn’t clear if the reciprocal tariff applies to particular merchandise or complete sectors.
A White Home truth sheet dated February 13 mentioned, “The U.S. common utilized Most Favored Nation (MFN) tariff on agricultural items is 5%. However India’s common utilized MFN tariff is 39%. India additionally prices a 100% tariff on U.S. bikes, whereas we solely cost a 2.4% tariff on Indian bikes.” On this, Mr. Srivastava mentioned that the U.S. should select a standards – product or sector – for clear determination making, else all of the US efforts on MFN tariff cuts will find yourself benefiting China as China is the most important international provider of commercial items.
Throughout April-November 2024-25, the U.S. was the second largest buying and selling accomplice of India with $82.52 billion bilateral commerce in items ($52.89 billion value of exports, $29.63 billion of imports and $23.26 billion commerce surplus).
Throughout 2021-24, America was the most important buying and selling accomplice of India. The U.S. is without doubt one of the few nations with which India has a commerce surplus.
In 2023-24, the U.S. was the most important buying and selling accomplice of India with $119.71 billion bilateral commerce in items ($77.51 billion value of exports, $42.19 billion of imports and $35.31 billion commerce surplus).
Revealed – February 14, 2025 02:16 pm IST
