America Donald Trump has registered a historic victory by defeating Kamala Harris in the presidential elections held in 2017. Trump will become the President of America for the second time. Donald Trump’s tenure as the President of America is of great importance not only for America but for the entire world and India is also included in it. Trump’s tenure is also very important for India. If the new US administration under Trump’s leadership decides to pursue ‘America First’ agenda, Indian exporters may have to face higher custom duties for automobiles, textiles and pharma.
Trump can make strict rules regarding H-1B visa
Experts said Trump may also tighten H-1B visa rules, which will impact the costs and growth of Indian IT companies. More than 80 percent of India’s IT export income comes from America, which makes India sensitive to changes in visa policy. America is India’s largest trading partner. India’s annual trade with America is more than 190 billion dollars. Ajay Srivastava, founder of Global Trade Research Initiative (GTRI) said that after China, Donald Trump can now impose tariffs on India and other countries also. Trump had earlier called India a ‘big tariff abuser’ and in October 2020 had termed India as a ‘tariff king’.
Trump’s agenda can create problems for many sectors of the country
“His America First agenda will likely emphasize protective measures, such as reciprocating tariffs on Indian goods, which could potentially raise barriers to key Indian exports such as automobiles, liquor, textiles and pharma,” Srivastava said. “These increases could make Indian products less competitive in the US, impacting revenues in these sectors.” However, he said America’s tough stance towards China could create new opportunities for Indian exporters.
Fear of trade dispute arising over duty
Bilateral trade in goods between the two countries stood at $120 billion in 2023-24, while it was $129.4 billion in 2022-23. International trade expert Biswajit Dhar said that Trump will increase tariffs in different sectors as he has to follow his call to ‘Make America Great Again’. “With Trump coming to power, we are going to enter a different era of protectionism,” Dhar said, adding that sectors like electronics could be impacted. Federation of Indian Export Organizations (FIEO) Director General Ajay Sahay said, “We can expect Trump to press for more balanced trade. But trade disputes may arise over tariffs.”
With PTI inputs
