The Trump trade war has sent the world economy in a tizzy and has also changed the face of world politics drastically. The developed and the developing economies are looking at the various changes happening in the US politics as it is going to prove much of a game changer eventually.
So, what does the trade war affect India and how will it affect India?
India on the other hand is planning to seek more of the oil drones also the aircraft from the US so that it can help narrow its tremendous trade surplus with the economy and Donald Trump’s trade spat with China.
India is on the path to bridge the US trade deficit by making them raise the imports while on the other hand the Trump administration seeks to renew the trade talks and seeks to change the world trade policies by seeking the protectionist measures.
The US has added India to the list of countries where it will monitor the possible currency manipulation and it will aim at boosting the exports in India.
How can it will be helpful to India?
India’s increasing imports will help increase balance of trade with the countries. The number has been on the rise since the year 2011 and has only been further increasing furthermore.
The US has lifted its four decade ban on the crude import oil details from the officials have known.
The Trump approach-
Trump’s approach to overall trade surplus has been counterproductive and been negative. How to narrow down bilateral trade tariffs and forces the countries to think about narrowing down the bilateral trade tariffs.
However, the conflicts over the trade tariffs have still remained at the same time India seeking an exemption from the steel and aluminum tariffs.