Whether Indian exports can benefit from higher tariffs on other countries is an open question. Plus, in FTA talks, New Delhi will face pressure from Trump to cut agri, auto tariffs. It must not. Instead, it can go easy on import-intensive exports, like smartphones. Net forex earning from these exports to US is low
Trump’s country-specific tariffs, varying from 10% to 54% — India’s been slapped with a 27% rate — can push investments in countries with lower tariff disadvantage. This may lead to the emergence of new manufacturing locations for prepared countries. India will need specific internal reforms to benefit. Will it step up?