India on Alert as Trump's Tariff Strategies Loom Large

Fri Mar 14 2025 08:31:16 GMT+0200 (Eastern European Standard Time)
India on Alert as Trump's Tariff Strategies Loom Large

India makes significant tariff cuts to keep trade relations healthy amid Trump’s renewed trade threats.


As former President Trump re-enters the political scene with aggressive trade strategies, India is proactively slashing import duties in an attempt to prevent potential tariffs from the US. With the stakes high for bilateral trade, experts debate whether these moves will appease Trump or lead to further tensions.

India recently implemented cuts to import duties on motorcycles, aiming to facilitate the entry of American companies like Harley Davidson, while also hoping to counter Trump's ongoing critique of India's tariff policies. The reduced import duties on heavyweight motorcycles dropped from 50% to 30%, and from 50% to 40% for smaller models, as India seeks to maintain a favorable trading status and avoid tariff hikes similar to those imposed on Canada's and Mexico's imports.

Trump's administration has long regarded India's tariff practices unfavorably, often labeling the country as a “tariff king” and spotlighting the 100% duties on US motorcycles. Even though Trump has shifted his attention back to trade with India, the nation's recent moves to eliminate various tariffs signal its willingness to adapt. Notably, India has gone beyond simply targeting motorcycles; import taxes on satellite installations and several agricultural products have also been lowered, demonstrating a broader approach to easing trade relations.

With bilateral trade soaring to over $190 billion and India maintaining a trade surplus with the United States, the stakes are considerable. These latest tariff adjustments could well be a strategic play by India to prevent Trump from exerting his "America First" policy on its economy.

While imports of crude oil and petroleum products remain significant, Indian agricultural market access has sparked prolonged discussions. As experts urge caution, domestic politics around farming might complicate further concessions from India. Nonetheless, India's role as a strategic ally against China, coupled with personal rapport between Modi and Trump, could mitigate potential trade fallout.

As the situation continues to evolve, much will hinge on high-level dialogues, including a forthcoming visit by Prime Minister Modi to the White House, which could determine the future of India-US trade relations.

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