Trump’s Tariff List: India Spared for Now, But Faces Trade War Warning.

Washington: India Not on Trump's Initial Tariff List, But Faces Warning

U.S. President Donald Trump has released the first list of countries subject to new tariffs, and India is not included. Trump has imposed 25% tariffs on Mexico and Canada and 10% on China, based on trade deficit concerns.

China, Mexico, and Canada top the U.S. trade deficit list, contributing 30.2%, 19%, and 14%, respectively. India accounts for only 3.2% of the total U.S. trade deficit and ranks ninth, keeping it off the initial tariff list.

Warning from the U.S.:

Trump has issued a strong warning to India and BRICS nations, stating that if they attempt to reduce dollar-based trade, they could face a 100% tariff. Additionally, citing India's tax policies, the U.S. may impose an extra 20% tariff. Canada and Mexico's 20% tariff takes effect on February 1, and China’s is expected next week, followed by India.

India’s Master Plan to Counter Tariffs:
To manage the situation, India is considering several strategies:

Lowering tariffs on U.S. goods to ease trade tensions.
Increasing imports from the U.S. to balance trade.
Exploring purchases of soybeans, dairy products, automobiles, medical equipment, aircraft, electronics, high-tech machinery, and textiles from the U.S.
Increasing chemical imports from the U.S.
Reaffirming commitment to dollar-based trade, distancing itself from BRICS currency initiatives.
India’s decision aligns with U.S. interests but may shock Russia and China, which oppose dollar dominance.
India is considering deporting 18,000 illegal Indian immigrants from the U.S. as a diplomatic measure to ease tensions.
Engaging in bilateral negotiations with the U.S. to establish mutually favorable trade policies.
Despite ongoing warnings from the U.S., India appears to be taking calculated steps to maintain a balanced trade relationship while avoiding economic disruptions.