India is considering cutting tariffs on select high-end imports from the U.S., including specialty steel, luxury motorcycles, and electronic goods. This move, expected to be revealed in Finance Minister Nirmala Sitharaman's budget speech, is unlikely to significantly impact domestic industries. India currently imposes over 100% duties on 20 U.S. imports.
This development follows former U.S. President Donald Trump's latest trade offensive, where he labeled India, China, and Brazil as "tremendous tariff-makers." Addressing House Republicans, Trump reaffirmed his "America First" stance, vowing to impose reciprocal tariffs on countries he believes exploit the U.S. "We're not going to let that happen anymore," he declared.
Trump has long used tariffs as a political and economic tool, claiming they would bring manufacturing jobs back to America by making foreign imports pricier. He has also hinted at 100% tariffs on BRICS nations as a countermeasure to their efforts to reduce reliance on the U.S. dollar.
Beyond economic strategy, Trump has wielded tariffs as leverage in international diplomacy. A striking example was his recent clash with Colombia, which initially refused to accept deported immigrants. In response, the U.S. slapped a 25% tariff on Colombian goods, forcing compliance.
With Prime Minister Modi's U.S. visit on the horizon, Trump's tariff rhetoric adds another layer of intrigue to India-U.S. trade relations. Will India's tariff cuts ease tensions, or is this just the beginning of a larger trade battle?
