Mint Quick Edit | Should Trump’s latest tariff salvos worry India?
Summary
- The US president plans a 25% import duty on automobiles, semiconductor chips and pharma products. How this squares with reciprocal tariffs is unclear. But it won’t do either India or the US any good.
US President Donald Trump seems to have expanded his tariffs further. He has announced another round of impositions targeting automobiles, semiconductor chips and pharmaceutical imports. “I probably will tell you that on April 2nd, but it will be in the neighbourhood of 25%," he reportedly said, referring to the rate he had in mind. These follow recent trade barriers against steel and aluminium imports, and also his declared plan for “reciprocal" levies.
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With the contours of US trade policy shape-shifting by the day, it is getting harder to figure out how one proposal squares up with the next. The idea of reciprocity suggests that the US wants tariffs that mirror what its trade partners have. In many cases, that would clash with the 25% rate he seems so fond of. Which rate regime will supersede the other has been left unclarified.
Also Read: Trump’s reciprocal tariffs: Time for India to rethink its trade policy
This heightens the trade uncertainty that he has plunged the globe into. For India, his pharmaceutical tariffs are a particular cause of worry, given America’s value as a market for Indian exporters. Since about 40% of US generic drugs are from India, it would face higher healthcare costs in the bargain. But that aspect doesn’t seem to perturb its leader.
Also Read: India must not let Trump’s tariffs and trade disruption weaken its export thrust
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