Donald Trump’s unpredictable trade policies and protectionist stance could overshadow Nirmala Sitharaman’s ambitious Budget plans to reduce the fiscal deficit, boost capital expenditure, and maintain high economic growth in India.
Abandoning the historical claim of the US to be leader of the free world, he said this had meant America paid for the security of others. He would now make others pay America for their security. This puts NATO partners on notice.
He announced the creation of a Department of External Revenue. This would collect high tariffs from imports to help build America. No longer, he said, would America cut tariffs to help others prosper, he would force others to pay to make America prosper. This portends an era of high tariffs, retaliation from others, and trade wars. That will hit world trade and growth everywhere, including in India. He promised to “Make in America and Hire in America”. That will hit Indian H-1B visa seekers and disrupt dollar remittances from the US to India.
This article was originally published by The Times of India on Jan 26, 2025.
