Tue Jan 21 10:11:32 UTC 2025: ## Trump’s Tariff Threats Prompt India to Prepare Retaliatory Measures
**New Delhi, January 21, 2025** – Trade experts are urging India to respond with equal measures should newly elected U.S. President Donald Trump follow through on his threats to impose higher tariffs on Indian goods. President Trump has previously criticized India’s tariffs, indicating his intent to retaliate with reciprocal tariffs.
This isn’t the first time the two nations have clashed over trade. In 2018, following U.S. tariffs on Indian steel and aluminum, India successfully implemented retaliatory duties on various U.S. products, recouping equivalent revenue. Experts like Ajay Srivastava of the Global Trade Research Initiative (GTRI) believe a similar, firm response is necessary now. Srivastava warns that higher tariffs could significantly impact Indian exports of automobiles, textiles, and pharmaceuticals. Furthermore, tighter H-1B visa restrictions, a possibility under a Trump administration, could severely hinder the growth of India’s IT sector, which relies heavily on the U.S. market.
Other experts echo this sentiment, emphasizing the need for a strong Indian response to protect its trade interests. Abhijit Das, an international trade expert, stresses the importance of clearly explaining why any U.S. tariffs are illegal and retaliating if they aren’t withdrawn. Concerns extend beyond specific goods, encompassing agriculture, industrial products, services, intellectual property, and digital trade.
While some exporters remain optimistic that Trump might not impose these tariffs due to ongoing U.S. investments in India, the overall consensus among experts is to prepare for a potential trade war. They point out the hypocrisy of Trump’s accusations, highlighting that many nations, including the U.S., utilize high tariffs to safeguard domestic industries. Data from the WTO’s World Tariff Profiles 2023 reveals substantial U.S. tariffs on various products, including dairy and agricultural goods.
Despite a history of favoring consultations, Biswajit Dhar, another international trade expert, suggests that proportionate retaliatory measures should be considered if negotiations fail. He also notes that India has a significant trade surplus with the U.S. However, positive growth in India’s exports to the U.S. (10.48% CAGR between 2001-23) and the potential for increased exports if the U.S. increases tariffs on Chinese goods offer a counterpoint to the potential negative impacts. The U.S. remains India’s largest trading partner, with over $190 billion in annual trade in 2023-24. The Indian government is urged to consult stakeholders thoroughly and prepare for all eventualities.
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