MAKING GOOD THE DEFICIT?
THE TOTAL GOODS trade between the US and India was an estimated USD129.2 billion in 2024. US goods exports to India in 2024 was USD 41.8 billion, up 3.4 per cent ($1.4 billion) from 2023. US goods import from India totaled USD 87.4 billion in 2024, up 4.5 per cent ($3.7 billion) from 2023. The US goods trade deficit with India was USD 45.7 billion in 2024, a 5.4 per cent increase ($2.4 billion) over 2023, according to USTR (US Trade Representative) Office data. The US tariff hike poses a significant challenge for Indian exporters, particularly in sectors such as electronics, textiles and agriculture. While exemptions for pharmaceuticals and energy provide relief, future uncertainties remain. India’s ability to adapt through trade negotiations and market diversification will be crucial in determining how well it can navigate these economic shifts. As global trade policies continue to evolve, India’s response will shape its position in the international market.
THE TENSION BETWEEN Washington and Beijing has risen to a cresendo with China announcing 84 per cent tariffs on U.S. goods from April 10, up from the 34 per cent previously announced. When China came out with a 34 per cent retaliatory tariff in response to the 54 per cent reciprocal tariff imposed by the US, an angry Trump hit back by hiking the tariff on China further to 104 per cent. On April 9, Trump announced a 90-day pause on the implementation of the “reciprocal” tariffs on 90 odd countries. But he sharpened his anager against China, by increasing the tariff initially to 125 per cent and further to 245 per cent. In the meanwhile, Beijing had told the World Trade Organization that the United States’ tariffs threatened to further destabilise global trade. “The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO on April 9.
