US President Donald Trump refrained from imposing tariffs on China at the start of his second term. Washington has ordered an investigation into whether China complied with trade deals reached during Trump’s first term. The move marks a change from Trump’s previously aggressive tariff policy.
The Trump administration plans to take action against other countries’ alleged irregular trade practices and currency manipulation with the aim of strengthening the US industrial base. In a press conference on Monday, Trump discussed possible tariffs on China but did not give a clear time frame for implementation. He said tariffs on Mexican and Canadian goods could come into effect on February 1.
Trump had promised to impose high tariffs on Chinese goods, including 60% duty, during the election campaign. He had warned countries of high tariffs on the BRICS bloc, which includes India. This delay in new tariffs is being seen as a more pragmatic approach from the US administration. Reports suggest that Trump is moving towards negotiations rather than immediate punitive action.
According to media reports, Trump is interested in trade talks with Chinese President Xi Jinping, possibly revisiting agreements reached during his first term. India, known for its protectionist trade policies, has been targeted by Trump in the past for high import duties. He has criticised Brazil and India for imposing heavy tariffs on US goods.
India-US trade is important for both economies. In 2023-24, India exported goods worth $77.52 billion to the US, while importing $42.2 billion from the US. If trade flows are disrupted, key sectors such as IT, textiles and pharmaceuticals could be affected. Higher US tariffs could reduce the competitiveness of Indian products, but rising tariffs on China could also create opportunities for Indian exporters.
Strong geopolitical ties between India and the US could help defuse trade disputes, while shared concerns over China’s influence could reduce trade tensions.
