Express View on Trump’s tariff on India: The second strike

Feb 12, 2025 07:00 IST First published on: Feb 12, 2025 astatine 07:00 IST

US President Donald Trump has opened different beforehand successful the commercialized wars. On Monday, helium signed orders levying 25 per cent tariffs connected each alloy and aluminium imports without immoderate objection oregon exemption. Trump is besides reported to person talked astir unveiling “reciprocal tariffs” implicit the adjacent fewer days. The tariffs connected alloy and aluminium volition wounded a ample swathe of countries — Canada, Mexico, Brazil and South Korea are among those apt to beryllium affected – and person already evoked beardown reactions. Canada’s manufacture curate is reported to person said that the state volition springiness a “clear and calibrated” response, portion Ursula von der Leyen, President of the European Commission, has said that the imposition of tariffs “will not spell unanswered”.

It is imaginable that Trump volition usage the menace of imposing tariffs arsenic a negotiating tool. A fewer days ago, helium had signed orders imposing 25 per cent further tariffs connected Canada and Mexico and 10 per cent connected Canada. However, the tariffs connected Canada and Mexico were delayed by 30 days pursuing talks betwixt Trump and the leaders of the 2 countries, which led to immoderate concessions by the latter. Considering that the levies connected alloy and aluminium volition beryllium effectual from March, determination whitethorn beryllium country to manoeuvre yet. Trump whitethorn besides presumption tariffs arsenic an instrumentality to rise home production. However, tariffs could besides trigger an summation successful the outgo of accumulation of different goods, pushing up inflation. This volition restrict the argumentation options earlier the US Federal Reserve. In its past meeting, arsenic the Fed kept rates steady, it came nether disapproval from Trump. India accounts for a tiny stock of US imports. In 2024, the country’s exports of superior alloy to the US had touched $450 million, portion exports of aluminium were $820 million. As per reports, determination is besides the interest that the higher tariffs successful the US volition propulsion exporting nations to look for alternate markets, with India a apt target. An summation successful supply, “dumping”, immoderate person said, could further enactment unit connected prices. Over the past fewer days, the Nifty Metal Index and shares of alloy companies person been falling, indicating capitalist concerns implicit the uncertainty. The Indian authorities volition person to measure the concern carefully.