India’s automobile aids, metals and chemicals are expected to see mixed effects from the new US tariffs announced by US President Donald Trump. Although direct exposure for Indian companies remains limited, the secondary impact on demand and pricing can be heavier in key sectors, but it also gives opportunities to certain Indian players.
Taking a 25% obligation on imports from Canada and Mexico, raising tariffs on China, and tariffs on steel and aluminum from all US trading partners could disrupt the global supply chain. US trade restrictions could also abandon India.
On Tuesday, Trump confirmed that the US will advance new tariffs in Canada and Mexico, marking a significant escalation of trade tensions. A 25% tariff on steel and aluminum imports from all US trading partners is expected to take effect on March 12th, but mutual tariffs in most countries will take effect on April 2nd.
The US President repeatedly signaled the American company’s stance on the issue, repeatedly saying “no room left” for negotiations with its North American neighbours. Canada has already announced retaliatory tariffs in response, further strengthening the trade dispute.
Trump also hiked China’s tariffs to 20% from before 10%, and denounced the lack of action on the latter’s part to crack down on opioid supply to his country. China retaliated with a 15% tariff on US exports.
