The proposed tariffs by US President-elect Donald Trump on several nations are an opportunity for India, top officials at NITI Aayog said on Wednesday. While these tariffs, if imposed, will be a shock to global trade in the short run, they will present an opportunity for India to increase its share in global supply chains, NITI Aayog Member Arvind Virmani said at a press conference.
During his campaign trail, Trump had called India “the biggest charger of tariffs” and had vowed to reciprocate if re-elected US president. Last week, Trump said he would impose tariffs on China, Mexico, and Canada on day one of his presidency, but did not mention India. Trump will take charge of the White House on January 20, 2025. On Saturday, Trump threatened 100% tariffs on exports from ‘BRICS’ nations to the US if these countries attempt to replace the dollar as the trading currency.
“There’s going to be huge disruption because of tariffs, it’s US trade, but there are going to be huge opportunities,” said B.V.R. Subrahmanyam, NITI Aayog’s Chief Executive Officer. “We are at first slip, the ball is coming in our direction, and the question is, can we actually prepare for ourselves.”
Subrahmanyam said that tariffs by the US can lead to a “massive boom” as such tariffs will lead to trade diversion. “How are we going to catch it is the big question,” he said at the launch of the think tank’s ‘Trade Watch Quarterly’ report. “I think that’s what we’re all focused on, very, very concerned and I think we’ll see some steps in the next few months,” Subrahmanyam said.
Last week, Morgan Stanley said that a 10% increase in tariffs on US imports from India could lower the south Asian country’s GDP growth by about 30 basis points.