India’s Trade Crisis: Trump’s Tariff Deadline Hits TODAY – What’s Next?
Introduction
The clock’s ticking—loudly—for India right now. The 90-day waiver on steel and aluminum tariffs that Trump gave us? Yeah, that expires today, July 9. Back in April, President Trump slapped these tariffs on 56 countries, India included, all in the name of his “America First” policy. New Delhi was hoping to work something out before the hammer falls. But here we are, deadline day, and still no deal. And trust me, this isn’t just some minor trade hiccup. The stakes? Huge.
Background: Trump’s Tariff War and India
1. What Led to the Tariffs?
Let’s be real—Trump’s trade wars have been his thing since day one. Doesn’t matter if you’re an ally or a rival; if he thinks you’re getting the better deal, he’ll come after you. India, despite being a strategic partner, got caught in the crossfire over steel and aluminum exports. We even fired back in 2019 with our own tariffs on American goods, which, surprise surprise, didn’t exactly smooth things over. Then came April 2020, and boom—more tariffs, this time under the shaky excuse of “national security.” Yeah, that raised a few eyebrows.
2. The 90-Day Waiver Explained
So, the U.S. gave us this temporary break to talk things out. Their angle? They want better market access and to kill our digital taxes on American tech giants. Our side? Trying to protect key industries while the economy’s already on shaky ground. Talks happened, lots of them. But here’s the thing—no one’s budging. And now time’s up.
Today’s Deadline: What’s at Stake?
1. Immediate Impact on India
If those tariffs kick in today, it’s bad news for steel, pharma, IT, and agriculture. Overnight, Indian exports get 26% more expensive. Try competing with that. Analysts are already warning about job cuts and slower growth—like we needed more problems after COVID.
2. Will a Last-Minute Deal Happen?
As of this morning? Radio silence. Some insiders say talks are still going, but the big issues—like our digital tax and U.S. demands to open up agriculture—are still deadlocked. Maybe they’ll pull off a short-term patch job, but honestly? Don’t hold your breath.
What If No Deal Is Reached?
1. Consequences for India
Those 26% tariffs could wipe out billions in export revenue. GDP growth? Forget about it. Long-term, it’s worse—investors might start seeing India as a risky bet. “This isn’t just about money,” says economist Priya Menon. “It’s about whether the world takes us seriously in global trade.” Ouch.
2. Global Reactions
We’re not the only ones sweating. The EU, Brazil—they’re all scrambling too. Some might gang up and take the U.S. to the WTO. Others might just hit back with their own tariffs. And China? Oh, they’re watching. If the U.S. and India drift apart, guess who’s waiting with open arms?
India’s Next Steps
1. Diplomatic and Economic Measures
So what do we do? Push harder on trade talks with the EU and ASEAN, for starters. Double down on “Make in India.” Maybe drag the U.S. to the WTO, though that’s a slow burn. At home, expect some quick band-aids for exporters—tax breaks, subsidies, the usual.
2. Long-Term Trade Strategy
Here’s the hard truth: relying less on the U.S. market isn’t optional anymore. Those digital tax fights with Big Tech? They’ll keep raging. And don’t be surprised if suddenly everyone’s talking about that stalled RCEP deal again. Trade expert Rajiv Bhatia puts it bluntly: “Diversify or get left behind.”
Conclusion
Today’s the day, folks. One way or another, India’s trade policy is about to take a hit. Maybe there’s a last-minute save. Maybe we’re in for a rough ride. But one thing’s clear—in a world where everyone’s putting up walls, India can’t afford to stand still. Play it smart, or get played.
Source: News18 Hindi – Nation
