How India can counter USA and China on Trump tariffs | Homeland  - video Dailymotion

India Today

Donald Trump’s new tariffs are shaking up global trade. While China, Vietnam, and others face steep hikes, India has been hit with a 26 per cent tariff— but it’s not all bad news.

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00:00Donald Trump has announced the tariffs and phew, it's a relief.

00:04At least now we know exactly where we stand with the USA in trade.

00:08I think India is positioned to benefit from the new tariff policy of America,

00:14if this opportunity is tapped into well by our country.

00:181. Lower tariffs have been announced on Indian goods compared to other countries.

00:232. China has been levied 34%, Bangladesh facing 37%,

00:28Sri Lanka is facing 44%, Vietnam is facing 46%, some other nations even higher.

00:35But in Asia what does this mean?

00:37That India could position and work toward becoming a manufacturing hub to counter China primarily.

00:443. America is not in the safe zone completely either.

00:48They will also face an increased price for consumers eventually on imported goods,

00:52possibly looking at recession too.

00:54Let me explain these points to you.

00:56Trump did what he is known to do, optics, theatrics, full on charts showing on camera and personal remarks.

01:03He called the 2nd of April as the liberation day.

01:06But did he really think this through?

01:08About India and Prime Minister Modi, here's what Donald Trump said.

01:12India very, very tough, very, very tough.

01:15Prime Minister just left and he's a great friend of mine but I said,

01:18you're a friend of mine but you're not treating us right.

01:22They charge us 52%, you have to understand we charge them almost nothing.

01:26So India received a tariff of 26%, exactly half of what India levies on the United States of America.

01:32We expected a lower tariff, yes of course,

01:34especially after the negotiations and expectations from the bonhomie, the leadership.

01:39And therefore the commerce ministry has said in the statement that they are studying finer details

01:44and calling this a mixed bag but not a setback.

01:47Why not a setback? Look closely.

01:50The annexure 2 highlights exemptions on certain items that are crucial exports from India

01:56into the United States of America, especially the pharmaceutical products.

02:00Items that have been exempted from American tariffs include gold and silver bullion,

02:05insulin and salts, vitamins and other derivatives, coins, stainless steel, waste and scrap,

02:12platinum, palladium, basic dye preparation.

02:16The USA realizes that it cannot afford to have high tariffs on certain issues

02:20that are important for their internal market and that would otherwise cause a disruption

02:24on some important items from India.

02:27India took the negotiation route because eventually trade also has to continue.

02:31There has been work on mission 500, that is the pledge of 500 billion dollar trade by 2030.

02:38There have been already meetings and negotiations in the past few months.

02:42In the 2025 union budget, the Indian government slashed duties on several high capacity motorcycles,

02:48for example, including Harley Davidson.

02:50So there was a certain signaling, a step that possibly in turn helped looking at our 26%

02:56compared to other nations.

02:58I come to point number 2. Unlike India's negotiations, China took a confrontational route.

03:04Why is comparison important with China here this time?

03:07The tariff for China is way higher in comparison. It's 34%.

03:12But reports suggest that there could be an added tax of 20% due to the charges

03:17of flow of fentanyl into the USA.

03:20So unlike India, China therefore has been threatening action.

03:24They've even vowed a retaliatory tariff against the USA on American goods if the tariffs are not lifted.

03:30And that tariff could go higher against America.

03:33This means tensions are bound to rise between the USA and China.

03:36America also has been planning to counter China for a while now.

03:40Remember that the Chinese investment in Asian nations has been rampant in the past two decades.

03:45Small Asian countries like Sri Lanka, Nepal, Vietnam, Cambodia, Indonesia and Thailand,

03:49among other nations, are glaring examples of this.

03:52So there comes an alliance that could pose a danger to India,

03:56especially how China is known to dominate.

03:58China and Pakistan together, investing a lot in Pakistan already,

04:02and then comes in with other countries as well.

04:05USA has imposed a 49% tariff on Cambodia.

04:09Some of these nations are fully integrated with China's supply chain.

04:14So there will have to be possibly a rethink on this too.

04:18So if there's going to be an impact on the existing trade pattern,

04:21that is where India can take an advantage.

04:23Showcasing itself as an alternative for production-related needs,

04:27not for the companies based in the Western nations,

04:30but Asian companies too, and especially in the manufacturing sector.

04:34Attracting both American companies and supporting the smaller Asian nations too.

04:39So that brings me to point number three.

04:42For all of Trump's theatrics, can the impact on the US economy also hit negatively?

04:49Despite Donald Trump promising that these tariffs will benefit the US economy eventually,

04:54experts say there could be a rethink on this.

04:57The actions could actually negatively impact the USA economy too.

05:01For example, how?

05:02The price of commodities could go up,

05:04especially in sectors like the automobile industry.

05:07For instance, car manufacturers using imported parts will have to face a higher price.

05:12Consumers will have to face the rise in car prices,

05:15as well as inflation on other commodities.

05:18Let's now look at where American manufacturers have been investing in.

05:22Vietnam, for example.

05:24After the liberation day, Trump imposed a tariff of 46% on Vietnam.

05:29That means American countries that deal in clothes, toys, furniture,

05:33could face a potential price hike for customers too back home.

05:36They could in fact move out of these countries.

05:39And I'm talking about American companies like Intel, Nike, Murphy Oil, Cargill,

05:45First Solar, Boeing, among many others that are actively present in Vietnam right now,

05:51investing heavily there.

05:53What happens now to the American companies too?

05:57So American companies whose manufacturing or several sectors,

06:00especially in apparel, for example, happens in other nations,

06:03will now get disrupted.

06:06I have another thought here.

06:07The USA has definitely ruffled feathers of many countries.

06:11What if some of these nations, even though facing territorial disputes, for example,

06:15could decide to come together and forge their own alliance,

06:19thus looking at options beyond the dollar,

06:22that is a dominant currency right now in the world.

06:25So India is currently at crossroads.

06:27How it really maneuvers that path, which benefits both India and Indian interests,

06:31will be the real test of diplomacy and geopolitical strategies.

06:35We will be watching and tracking that closely.

How India can counter USA and China on Trump tariffs | Homeland

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