Subtitle:
Potential 15-20% global tariff by Trump may impact India’s economy if re-elected
News Report:
Former U.S. President Donald Trump’s recent announcement of likely global tariffs ranging from 15% to 20% has sparked concern among Indian economists and exporters, who fear the move could deliver a significant blow to India’s economic growth and global trade prospects.
Trump, speaking at a campaign rally earlier this week, reiterated his long-standing protectionist stance, indicating that if he returns to the White House in 2025, he would implement a broad tariff policy aimed at boosting domestic manufacturing and reducing dependence on foreign imports. While the policy is primarily aimed at China, experts warn that India—being a major trading partner—won’t be spared from its ripple effects.
India currently enjoys a strong trade relationship with the United States, with exports ranging from pharmaceuticals and textiles to machinery and electronics. A blanket tariff would not only make Indian goods less competitive in the American market but could also force Indian exporters to absorb higher costs or lose key contracts.
Industry leaders in India are calling for early engagement between New Delhi and Washington to seek exemptions or revised terms. “Any sudden tariff hike could hit sectors like IT services, auto parts, and textiles very hard,” said a senior official from the Federation of Indian Export Organisations (FIEO).
Moreover, analysts say a tariff wall from the U.S. could reduce India’s export growth, widen the trade deficit, and indirectly affect employment in export-driven industries. The development comes at a time when India is aiming to ramp up its exports to $2 trillion by 2030 as part of its economic roadmap.
While the Indian government has not yet issued an official response, sources within the Commerce Ministry suggest that contingency discussions are already underway.
With the U.S. elections drawing closer and Trump maintaining a lead in some Republican primaries, Indian policymakers are watching closely—aware that global economic policies could once again shift dramatically in 2025.