DNA TV Show: How India can respond to Trump’s tariffs

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US President Donald Trump has claimed that he wants to stop wars all over the world, but by repeatedly threatening India with tariffs, Trump himself can start an economic war. If this fear of economic conflict turns into reality, then how can India respond to the US?

If Trump imposes more than a 25 per cent tariff on India, then India can also increase tariffs on products coming from the US. The second option is that alternative markets can be found for Indian products currently supplied to the US.

Make in India, that is, the production of products for which India is dependent on the US, should be increased in India so that dependence on US can be reduced. The losses caused by US tariffs can be minimised by providing subsidies to the Indian sectors that will be affected by Trump’s tariffs, and the last option is that dialogue between India and the US continues, so that Trump’s stance on the tariff issue softens in the future.

Laptops are also included in American exports to India. If we assume that today the price of a laptop coming from America is Rs 50,000, and if India also imposes a tariff of 20 or 25 per cent on US, then the price of laptops coming from US will become Rs 70,000 to Rs 75,000. In such a situation, Indian customers will buy cheap laptops made in Singapore, Malaysia instead of expensive laptops, which will reduce the consumption of American laptops in the Indian market.

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It is not that US laptops are supplied only to India. Laptops are exported from US to countries like Canada, Mexico, the Netherlands and Britain, but the markets of these countries are much smaller than India, which means that US manufacturers will either have to reduce production or reduce the power of their products. In both cases, US companies will suffer losses.

There was a time when India was dependent on US for its strategic needs, but today, on the strength of indigenous companies in the defence sector, India itself is exporting weapons, which has reduced India’s dependence on US. This Make in India can emerge as India’s strength in the economic war as well.

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