As Donald Trump gears up for a second term in the White House, one of the key dynamics to watch will be the evolution of Indo-US relations, particularly in trade and semiconductors. While Trump’s first term was marked by protectionist policies and a tough stance against China, his second administration could lead to significant shifts in global trade, with India emerging as a key partner. This evolving relationship holds promise for India, especially in light of the ongoing geopolitical tensions with China and India’s aspirations in high-tech manufacturing.
Trade Relations: Shifting Focus from China to India
The trade relationship between India and the United States has been steadily growing, and experts predict it will continue to expand under Trump’s leadership. Prof David J Meyer, Dean of Woxsen University’s School of Business, points to the potential for this trend to accelerate: “The already rapidly growing trade relationship between the US and India is likely to rise even further with the advent of the second Trump administration.”
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Trump’s admiration for India and its people has been a consistent theme throughout his political career. He has shown particular support for figures of Indian origin, including appointing Nikki Haley, a former governor of South Carolina and of Sikh origin, as US Ambassador to the UN. Additionally, Trump’s relationships with other Indian-American figures, such as Vivek Ramaswamy, suggest that India will continue to have a prominent place in his foreign policy.
Prof. Meyer adds, “Trump has cultivated close ties with influential Indian-American figures, which could translate into deeper economic cooperation between the two countries.”
One of the most significant changes that could emerge under Trump’s second term is the shift in US manufacturing away from China to India. As tensions with China continue to escalate, the United States is increasingly seeking alternatives to the Asian giant for both trade and manufacturing. “Americans of both parties are enraged by China’s aggressive mercantilism and open threats,” Prof.
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