2 weeks Ago By TOI News Desk
India stands to gain substantial export opportunities due to potential trade disruptions arising from the incoming US President-elect Donald Trump's proposed tariff policies, according to a Shriram Mutual Fund analysis . The report highlighted potential benefits for India as Trump's planned tariffs on major US trading partners--China, Mexico, and Canada--may result in trade redirection . What are the proposed policies and trade benifits "India can gain from export opportunities as trade disruptions from US tariffs on China, Mexico, and Canada could lead to trade diversion," the report said, news agency PTI reported.
"Trump threatens to impose tariffs over De-Dollarization, Threats to impose tariffs on Top 3 US import Partners, 10 per cent additional tariffs on China, 25 per cent tariffs on Canada and Mexico" it added. These measures could disrupt trade flows, potentially creating opportunities for Indian exporters to gain a foothold in these markets. The policy initiatives are part of Trump's broader economic strategy to safeguard American industries and address concerns about de-dollarisation.
His proposed policies include reducing US manufacturer corporate tax from 21 per cent to 15 per cent, implementing 60 per cent tariffs on Chinese imports, and establishing 10-20 per cent duties for other nations. The analysis examined Trump's comprehensive economic strategy and its potential global market implications . These initiatives aim to strengthen domestic production but could result in increased inflation and higher interest rates.
Trump's immigration stance, advocating widespread deportation of illegal immigrants, could disrupt labor supply in the US. His foreign policy includes reducing Ukraine assistance, limiting Nato engagement, whilst increasing support for Israel and Taiwan. The report also underscores Trump's efforts to gain greater influence over the Federal Reserve, potentially leading to short-term market instability.
A stronger US dollar, driven by these policies, is already noticeable, with the dollar making up 49 per cent of global payments as of August 2024—the highest in 12 years. Despite potential global growth constraints and increased economic uncertainty under Trump's policies, the analysis suggests India could benefit as a dependable export alternative amidst changing trade dynamics. Stay updated with the latest news on Times of India .
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