As a second Trump term in the White House looms, India faces a renewed challenge in managing its trade relationship with the United States. During Mr Donald Trump’s earlier term as President, India experienced direct and often aggressive pressure to lower tariffs on specific American goods, notably high-end motorcycles, in line with his “America First” vision. This stance demanded concessions to “balance” trade relationships, typically prioritising American economic interests.
While recent years under the Biden administration saw a more measured approach, the return of Mr Trump’s transactional diplomacy would likely mean a return to tough negotiations for India. The country’s trade with the US is a high-stakes matter: the US remains one of India’s largest markets for exports, ranging from engineering goods and pharmaceuticals to textiles and jewellery. Giv en the reliance on these sectors to drive India’s economic growth, India stands to gain considerably from maintaining strong trade ties with the US.
However, Mr Trump’s probable emph asis on India reducing tariffs to benefit Ame rican exp – or ters poses a direct challenge. From India’s perspective, managing this relationship without conceding too much in sensitive areas like dairy or certain con tro lled medical devices will be critical. On the flip side, Mr Trump’s return may also present opportunities for India, especially amid the US’s increasing push to diversify its manufacturing base away .