Donald Trump vs India: U.S. May Have to Rely on India Again Amid Rising Trade Concerns

Trade relations between India and the United States have become strained in recent months. The imposition of a 50% tariff by the United States on imports from India has significantly impacted the textile and some other industries. Many manufacturing companies, especially in Surat, Noida, and Tirupur, have had to scale back their operations, and exports from India to the United States are expected to decrease by nearly 70%. This is likely to have a direct impact on the $55 billion trade.

However, in this situation, America is also facing serious challenges in some areas. This is because some important goods are available in large quantities only in India. Therefore, for these products, America has no option but to purchase from India. Importing from other countries will increase costs significantly, and there is no guarantee of consistent supply.

On which items is there no tax?

The United States has not imposed a 50% tax on medicines, electronics, energy, and petroleum products. Some of these items have only a 25% tax, which includes iron, aluminum, copper, and products made from them.

Pharma Industry: There is a large supply of generic medicines from India to the United States. The American healthcare system relies on relatively inexpensive Indian medicines. It is feared that imposing higher taxes on these medicines would double the price, causing difficulties for ordinary citizens.

Smartphones and Electronics: A large part of the raw materials and production of international companies like Apple and Samsung is now done in India. Therefore, if a tax is imposed on these goods, the prices of electronic items in the American market will increase, and there is a risk of reduced sales.

India's Next Move?

Currently, there is relief from the US on these products, but India is considering imposing an export tax for its own benefit. If such a decision is made, it could increase pressure in the American market. Therefore, everyone is watching how the trade tension between the two countries unfolds.