Trump has announced yesterday that he is going to put 25% tariff on India along with that there might be some penalty on India as it is buying some oil from Russia. Actually Trump is not happy with the BRICS nation as it wants to trade in some currency other than the USD. Though it was not decided but it has irked Trump.
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Trump wants to Make America Great Again buy putting tariff on all nations. And heavy tariff on nations which are considering getting away from the USD. India is the largest exporter of generic Medicine to America. Now if it puts 25% tariff, then basically American people will be paying 25% more on the medicines which is again I guess loss to them itself.
I feel the pharma and agri products should not be part of tariff because that is like the essential. Try to put tariff on other things which is not essential but when you make tariff on essential items, it will be hard for the common people who are consuming that essential items. I feel tariff should be there but it should be equal to both the countries. Some of the countries like EU or Korea or Japan, the tariff is just one sided, where only America is getting benefit and not the other party.
The thing is India is actually having a good relation with all the countries except few. And thus even though America's tariff is high, there are other markets where Indian export will increase. And for import, India can rely on the EU where the tariff is also 0 and with Russia where the trade is increasing. Similarly for defence contract, India is having the contract with a lot of companies including America, France, Russia etc so it is good in that front too.
The problem will come when the services will be impacted because most of the IT back office of America is in India.
Posted Using INLEO