India-U.S. Trade War: How Trump’s Tariffs Impact Modi’s Economic Strategy

Insights Market25 Feb, 2025Business

India and the United States are navigating growing trade tensions after Prime Minister Narendra Modi met former President Donald Trump. Their discussion covered defense, trade, and economic ties. Washington has offered F-35 fighter jets, while India is advancing its indigenous AMCA project to reduce reliance on foreign suppliers. Trade remains a key issue as increased tariffs could impact Indian exports like food, textiles, jewelry, and pharmaceuticals. The dispute arises from India's 9.5% tariff on American goods, compared to Washington’s 3% on Indian imports. To ease tensions, India is considering lowering tariffs on select products and increasing imports in defense and energy sectors. As both nations negotiate, the outcome will shape future trade and economic relations, influencing businesses and consumers alike.

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