US seen to remain protectionist, regardless of electoral outcome

As the US prepares to elect its next President in keenly contested election, irrespective of who the winner will be, there is unlikely to be a big change in the approach of the world’s largest economy when it comes to trade and investments relations with India, analysts and trade sources feel.

There will likely be continuation of the “America First” policy by the new administration though tools and pace of implementation of this slogan may differ between Donald Trump or Kamala Harris presidencies.

In the run-up to elections the Republican party candidate Trump has already announced that he will be raising import duties to 20% across the board and putting a 60% duty on Chinese imports. On some products like electric vehicles he has talked of 100% duties.

Also ReadWelspun Corp bags 2 orders for supply of coated HSAW pipes in US

For perspective, the trade-weighted average import tariff rate for industrial goods in the US is just 2.0%. About 94% of US merchandise imports are industrial goods, and half of those enter the country duty-free. On whether there can be sudden across the board duty hikes, trade expert and acting president and Distinguished Professor, Council for Social Development Biswajit Dhar says it is “possible” because Trump has done something similar in his previous presidency.

The outgoing Joe Biden administration has singled out China for punitive duties. On Chinese electric vehicles import duties of 100% have been imposed, on chips the duty has been raised to 50%. Apart from tariffs, the Biden administration has also through the Inflation Reduction Act unveiled massive subsidies for “re-industrialisation” of the US, meaning regaining the country’s acclaimed manufacturing prowess.

Each side of the US political divide has proved its commitment to re-industrialisation. If Harris wins then the US government may rely less on across the board hikes in import duties but put barriers to imports through imposition of environmental, labour and other standards, according to the CEO and director general of Federation of Indian Export Organisations (FIEO) Ajay Sahai.

“Biden has actually put in place very extensive industrial policy. One of the things that is given in the case of industrial policy is that tariffs are raised. The US will almost be starting from scratch because all the earlier manufacturing industry has almost disappeared.

 » Read More

Related Articles

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

New Tax Regime: These deductions, exemptions still available for you

The Indian government introduced a new tax regime in 2020, offering lower tax rates while removing several exemptions and deductions available under the old system. Initially optional, this regime became the default in 2023, requiring taxpayers to opt out if they wished to continue under the old structure. Despite the removal of many benefits, certain

Range bound session: Nifty ends above 23,600, Sensex holds 78,000 led by Adani Ports, Infosys

The stock markets faced a downturn on Thursday, with major indices closing in the red. The BSE Sensex dropped by 213.12 points or 0.27%, ending the day at 78,058.16, while the NSE Nifty 50 saw a decline of 70.15 points, down by 0.3%, and closed at 23,626.15. The Nifty Bank index also ended the day

IT stocks stable as Cognizant raises annual and quarterly revenue guidance

Shares of Indian IT companies are in the spotlight today after the Nasdaq-listed IT services major Cognizant Technology Solutions, reported its Q4 results that exceeded Wall Street expectations. The Nifty IT Index as well as individual tech counters like Infosys, Wipro, Tech Mahindra and HCL Tech are all in the green even as the markets

Three midcap stocks to avoid in this reversal market

By Brijesh Bhatia In investing, market cycles are inevitable. Whether in a bullish or bearish phase, investor sentiment and stock performance often shift with the tides of economic and market changes. During a bullish market, investors are drawn to stocks with strong upward trends, enjoying the thrill of the ride. But as the market turns

Demand for upscale properties is on the rise in Mumbai and Pune: Vishal Jumani

Mumbai and Pune’s luxury real estate market is thriving, with growing demand for homes offering long-term value and sustainability. Both cities are witnessing a transformation towards properties that harmoniously combine urban living with extensive amenities, attracting buyers who prioritize comfort and meaningful living, says Vishal Jumani, Joint Managing Director, Supreme Universal. In an exclusive interview