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India's Options To Respond

In response to Trump's tariff plans, India can increase the imports of oil and natural gas from the world's top energy producer. Trump has vowed to ramp up US energy production with his "drill baby drill" pledge.

During his first term, New Delhi sought to assuage the president's trade worries by purchasing more liquified natural gas — seen as a cleaner but pricier alternative to other fossil fuels. India already pledged to increase energy imports by $10 billion to $25 billion.

It can also increase imports of US defence equipment, reduce tariffs on certain agri and food commodities as well as electric vehicles.

Here's a snapshot of India's likely options:

Auto and ancillary

  • Reduce taxes on auto imports.

  • Two-wheeler and car import tariff differential at 67.5 percentage points.

  • However, high tariff could impact ancillary exports of over $2.1 billion.

Textiles and apparels

  • US accounted for 28% of India’s textile exports.

  • Even with tariffs, India could remain competitive compared to China due to the 40% incremental tariffs. But it could lose market share to Vietnam and Bangladesh.

  • One of the ways of mitigating this would be to lower India’s tariffs on US cotton imports.

  • More than half of textile and apparel imports in India are US cotton. Reducing that could equalise or lower differentials.

Pharma

  • Overall pharma and related imports are around $800 million.

  • The tariff differential is 7.6 percentage points.

  • India can lower tariffs.

Food and related commodities

  • High tariffs have been a barrier for protecting domestic production.

  • India can lower tariffs on alcohol, categories of prepared food and beverages that are currently more than 100%.

Posted
27 minutes ago, Spartan said:

India's Options To Respond

In response to Trump's tariff plans, India can increase the imports of oil and natural gas from the world's top energy producer. Trump has vowed to ramp up US energy production with his "drill baby drill" pledge.

During his first term, New Delhi sought to assuage the president's trade worries by purchasing more liquified natural gas — seen as a cleaner but pricier alternative to other fossil fuels. India already pledged to increase energy imports by $10 billion to $25 billion.

It can also increase imports of US defence equipment, reduce tariffs on certain agri and food commodities as well as electric vehicles.

Here's a snapshot of India's likely options:

Auto and ancillary

  • Reduce taxes on auto imports.

  • Two-wheeler and car import tariff differential at 67.5 percentage points.

  • However, high tariff could impact ancillary exports of over $2.1 billion.

Textiles and apparels

  • US accounted for 28% of India’s textile exports.

  • Even with tariffs, India could remain competitive compared to China due to the 40% incremental tariffs. But it could lose market share to Vietnam and Bangladesh.

  • One of the ways of mitigating this would be to lower India’s tariffs on US cotton imports.

  • More than half of textile and apparel imports in India are US cotton. Reducing that could equalise or lower differentials.

Pharma

  • Overall pharma and related imports are around $800 million.

  • The tariff differential is 7.6 percentage points.

  • India can lower tariffs.

Food and related commodities

  • High tariffs have been a barrier for protecting domestic production.

  • India can lower tariffs on alcohol, categories of prepared food and beverages that are currently more than 100%.

Year ending ki set chestharu le. Eppudu edho thatha gari noti dhoola valla konchem Indian ego hurt ayyindhi pakistan ragging us. Time chudu okappudu friends anukunna vadu valla ki crypto friend ayyadu manaki daily gunapam with his mouth. But Ind will come to negotiations very soon

Posted
1 minute ago, BacklogBadham said:

Year ending ki set chestharu le. Eppudu edho thatha gari noti dhoola valla konchem Indian ego hurt ayyindhi pakistan ragging us. Time chudu okappudu friends anukunna vadu valla ki crypto friend ayyadu manaki daily gunapam with his mouth. But Ind will come to negotiations very soon

Tariffs valla both sides bokka.

only benifitting Trumf own business..

once it hits the consumer reality....vere beauracrats will ask trump to go to negotiating table back with india.

until then we just suck it up. and hold restrain

Posted
3 minutes ago, Spartan said:

Tariffs valla both sides bokka.

only benifitting Trumf own business..

once it hits the consumer reality....vere beauracrats will ask trump to go to negotiating table back with india.

until then we just suck it up. and hold restrain

Manake ekkuva bokka bro. Other cluntires are ready to replace us. Mana dhaggara emi rare earth materials levu China la every toy to car not from India pedha ga vadu longataniki. China meedha Enduku silent ayyadu be cause of chips and rare earth material set chesukunnadu. Mana dhaggara agriculture entry aduguthunnadu. Konchem mana vallu kuda self sustain avvali USA meedha depend avvakunda vere markets Chusukovali. Evvala Trump repu Vance or Newsom etc evaru not a friend. 

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