Trump’s whip will run on China, there is no need to be happy for India, will come to great trouble, understand


Last Updated:

Us Chian Trade War: India has both advantages and challenges from America-China trade war. US sanctions may increase India’s exports, and companies can shift investment. But global recession, raw materials increase …Read more

Trump's whip will run on China, there is no need to be happy for India, understand

America-China trade war will affect India. (AP/ Reuters)

Highlights

  • America and US trade war will affect India
  • It will have both positive and negative effects
  • India’s exports may increase but economic pressure will also bear

Washington: US President Donald Trump spoke of strict sanctions on China. But he has not taken any such decision immediately after taking the oath. His administration has ordered an inquiry into whether China has followed the trade agreement during their first term. This shows a major change in Trump’s policy amid threats of strict sanctions on China. Even in his first term, Trump imposed strict sanctions on China. But the sanctions from America will affect not only China but also India. Their effect will be both good and bad.

After 2018, the US had increased the tariffs manifold on more than 11000 products of China. China also retaliated and increased tax on American products. America’s supply chain was also affected due to tariff on Chinese goods. At the same time, there was a decrease in the benefits of Chinese companies. The Libonies Information Center for economics located in Hamburg, Germany, published a paper in 2021 and stated that India’s exports increased on a large scale due to the trade of the US and China.

What can be the benefit for India?

  • Due to the ban on China, American companies can look towards India for the option of goods and raw materials, which can once again increase India’s exports.
  • Electronics, textile and chemical sectors of India can benefit in large scale.
  • Due to the restrictions, American businesses can shift their investment from China to other countries including India.
  • Due to tariff on Chinese goods, Indian goods can get an increase in global markets.

What will be difficult for India
China is a huge market. Apart from this, it is also called the factory of the world. The impact of the trade between the US and China will be felt all over the world. For this reason, a global economic slowdown can be seen. It will also have a negative impact on India. It can affect India’s exports. India exports China like cotton, chemicals and iron and raw materials to China. Due to recession, its demand in China may be reduced. If China’s goods are expensive due to American tariffs, then the price of products like electronics, machinery and raw materials may increase all over the world. This will also affect Indian importers.

homeworld

Trump’s whip will run on China, there is no need to be happy for India, understand