Trump’s victory is unlikely to result in a major policy shift for the US towards India as the country anyway enjoys bipartisan support in the US, according to experts. But, India may actually need to watch out for stiffer action on the tariff front as “reciprocal tariffs” against Indian goods have been one of Trump’s prominent election pitches.
In an article on November 6, businessline indicated that there was a general bipartisan consensus in the US with regard to deepening relations with India due to their own strategic global objectives, pointed out Anil Trigunayat, a former diplomat. “Given India’s economic and democratic and demographic heft and strategic autonomy in foreign and security policy, even though reluctantly acknowledged, is seen as useful in their geopolitical and geoeconomic considerations hence despite occasional blips and irritants US-India relations will move apace,” the article quoted him as saying.
‘Watchful on tariffs’
Donald Trump’s action on trade and tariff is something that needs to be watched. “There is some element of erraticism and unpredictability in his decision making. One has to see how he settles in and defines his priorities,” according to Trigunayat.
Indian industry’s primary concern now is high tariffs. It may be recalled that in an election rally last month, Trump criticised India’s tariffs on foreign products and also talked about bringing in reciprocal tax if he won the elections.
The article also cited Trump’s reference to India as ‘Tariff King’ at one point. “Tariff issues could surface in a much more awkward manner (following Trump’s victory). This is Trump’s long-term agenda of fixing countries that have high tariffs. He called India tariff king at one point of time. Action against tariffs could happen more dramatically,” said Biswajit Dhar, Distinguished Professor, Council for Social Development.
On the positive side, Dhar said that Trump would not be as harsh on Russian President Vladimir Putin as the present US President Joe Biden and the pressure on Indian companies dealing with Russian firms would be less.