US tariff policies under Trump could disrupt trade, creating export opportunities for India amid shifting global trade patterns.
A report by Shriram Mutual Fund suggests that India’s export landscape could benefit significantly from trade disruptions caused by proposed tariffs under US President Donald Trump’s economic policies. Targeting major US import partners like China, Mexico, and Canada, these tariffs could lead to trade diversions favouring countries like India.
Trump’s tariff agenda includes an additional 10% levy on Chinese imports and steep 25% tariffs on goods from Canada and Mexico. While designed to protect American industries and address de-dollarization, such measures could open up new markets for Indian exporters.
The report also highlights Trump’s broader economic goals, including reducing corporate tax rates, imposing up to 60% tariffs on certain imports, and tightening immigration policies, which could lead to inflation and labour shortages in the US. On the foreign policy front, his plans to cut aid to Ukraine and alter NATO’s role could further shake global stability.
India, however, emerges as a potential beneficiary, positioned as a reliable alternative in the face of shifting trade patterns. As global markets brace for the impact of Trump’s policies, India stands ready to capitalise on emerging export opportunities.
