New Delhi/Washingtona few moments ago
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America’s newly elected President Donald Trump is working on a plan to increase tariffs on Chinese exports as soon as he returns to power. Trump’s decision to increase tariffs on China may have a negative impact on India.
According to the report of credit rating agency CRISIL, after US sanctions, China can aggressively increase its exports in Asian markets. Due to this, Indian exporters will face difficulties in competing with China in the regional and global markets. This will have a direct impact on Indian exports.
Due to this, global trade is also at risk. The report said that due to high tariffs and slowdown in the Chinese economy, there is a possibility of increase in sugar exports to other countries of the world including India.
According to the news of Asia Times, China has increased its exports to South Asian countries.
Trump has threatened to increase tariffs on India
India is also among the countries facing Trump’s threat of increasing tariffs. Trump has threatened several times to increase tariffs on India. In a statement last month, Trump said that whatever tariff India imposes on America, we will also impose the same tariff in return.
Trump said that India is among the countries which impose the highest tariffs on American goods. Trump’s Commerce Secretary has also threatened tariffs on India.
Apart from India and China, Canada and Mexico are also facing Trump’s tariff threat.
India’s exports are declining
According to CRISIL report, India’s exports have been unstable in the current financial year. An increase in exports was seen in the first quarter (April-June). But it declined in the second quarter (July-September). There was a decline again in the last two months of the third quarter.
Exports declined by 4.8% in November and 1% in December. The main reason for this was the decline in exports of jewelery and oil. Jewelery and oil exports declined by 26% and 28% respectively. However, meanwhile, exports of readymade garments, minerals, handicrafts and coffee recorded strong growth.
The CRISIL report emphasized the policy changes China will make in the coming months to maintain its exports. Its impact on global trade will be visible.