‘They’re going to probably be lowering those tariffs’: Donald Trump hints at India’s trade shift

US President Donald Trump hinted the potential movement of India’s commercial policy, suggesting that new Delhi can reduce tariffs on American goods. Trump said in a conversation with Brebart news on Wednesday.

His statement attaches importance to the escalation of tension and signal on the possibility of a new tariff structure between the two countries. This step could have significant consequences for India’s economy, trade balance and financial markets.

If India reduces American import tariffs, domestic industries, such as agriculture, cars and electronics can collide with an intensive competition. In addition, tariffs, which are a source of ordinary income, can narrow down the excess of India’s trade with the United States and affect fiscal stability.

On the other hand, if the United States imposes mutual tariffs, Indian exports, in particular metals, chemicals and pharmaceuticals, can hit a hit. Exports can weaken the stock markets and put pressure on Indian rupees, which leads to the devaluation of the US dollar.

Potential impact

• Export areas. In industries, cars, pharmaceuticals and textiles can see a decline in stock prices, reduced competitiveness and profit margins.
• Currency fluctuations. Immerseing and importing imports can weaken Rupees, affecting foreign currency business.
• Investors mood. High-tension of trading can interfere with foreign direct investment (FDI) as uncertainty and instability.

Trading analysts emphasize India to negotiate a broader trade agreement with the United States to ensure the availability of the market and to alleviate tariff effects. Some experts believe that diversification of export markets and strengthening domestic production can help buffer effect. Others claim that the various Indian export portfolio and growing services can compensate for some damage, although long-term effects remain uncertain.