India Vs US Trade War: India and the United States are working together as of March 8, 2025. Trump and Modi decided to solve the issues of the new tariffs by President Trump. These tariffs could cause concerns for Indian exporters. If these tariffs getting higher then countries pays high taxes on U.S. products. India could face big changes because of its major trade with America.
U.S. commerce secretary Howard Lutnick said on Friday, If India buy more defence product from U.S. not Russia and lowering the tariff on American goods then they should be signed the ‘Grand bilateral deal’.
U.S. Advocacy for Tariff Reduction
The U.S. commerce secretary Howard Lutnick, wants India to cut the higher tariffs on goods which is some of the highest in the world by lowering them could improve the bond between the two nations. This request happened before new tariffs are announced by President Trump. These tariffs will affect trade partners including India.
Economic Pressure on India exports
The Indian exporters would face hard times with United states and Europe new trade rules. The CHIPS Act is another U.S. plan after raising taxes on imports. Europe has carbon taxes. Major sector like auto and farm Industries are most affected by these trade plans. EU also have other policies to protect their markets. India will have potential loss of $7 billion annually.
Impact on Indian Industries
The Steel trade will change worldwide after the U.S. tariffs on steel and aluminium. Indian steel companies already face cheap steel imports more from China, Japan and South Korea. The rate may fallen down more as new buyers will selling steel in more lower prices this could affect the Indian steel prices causes to fall by about 3000 rupees ($34.52) per ton. This could hurt India’s steel production growth.
Read also: China Impose Tariff On Canada
India’s Response towards new ‘Grand trade deal’
Prime Minister Modi and President Trump talked about trade after the global trade trend mess they want to fix things up for greater good for both the nations. Their goal is $500 billion in trade by 2030. Secretary Lutnick and Trade minister of India Piyush Goyal meet in the U.S. for discussing about tariff including motorcycle tariffs which could drop from 50% to 30% and Bourbon tariffs may fall from 150% to 100%. India will also look at other tariffs. They plan to buy more U.S. energy and defense items.
Conclusion
Trade minister Goyal has working hard to lessen the effects of U.S. tariffs. Both secretary Lutnick and Goyal negotiating and open to changing some tariffs. The situation is not confirmed yet as the changing of coarse all the time. The result of these talks will greatly affect India’s trade and money plans in the future.
