Trump Tariffs: India Slaps Back Amid US-China Trade Deal
Highlights
- US-India trade war tensions escalate as India announced retaliatory measures on Trump tariffs.
- These tariffs are expected to impact $7.6 billion worth of Indian exports to the US.
- President Trump announced a "total reset" in trade relations with China raising concerns about the "China Plus One" strategy.
- Crypto market continues to move forward looking beyond these macro developments as Ethereum, XRP, Solana, Dogecoin, and Cardano posted 4-10% gains.
India decided to introduce retaliatory measures against Trump tariffs after the US President decided to raise duties on steel and aluminum imports. The announcement comes just as US-China trade deal sees positive development, raising doubts over America’s China plus one policy.
Trump Tariffs: India Doesn’t Give Up to Donald Trump’s Whims
US President Donald Trump has dialed back significantly on the U.S.-China trade war after raising 145% in April. On the other hand, the progress on US-India trade talks seems to hit a barrier as India plans to put tariffs on several products as a retaliatory response to Trump tariffs on US steel and aluminum imports.
In March, the United States introduced a 25% tariff on steel and aluminum imports. As the world’s second-largest crude steel producer, India informed the WTO that these tariffs would impact $7.6 billion worth of Indian exports to the US.
The US-India trade war tensions escalated at a time when the two countries were discussing a Bilateral Trade Agreement (BTA), which is likely to conclude on July 8. This will be just before the 25% Trump tariffs kick in on Indian imports into the US, considering the 90-day grace period.
With President Trump announcing agreements with the UK and China over the past week, India, a key economic partner, waits on the sidelines. On Monday, Trump declared a “total reset” in the US-China Trade deal following the public release of the trade deal details between the two nations.
This could potentially impact India’s competitive edge in attracting global firms willing to relocate from China. This dialing back of Trump tariffs on China undermines the “China Plus One” strategy.
Crypto Market Upside Continues
Amid these broader macro developments, crypto market continues its upside, with Bitcoin price bouncing back 2% to $103,500, after dropping back on Tuesday. Altcoins are staging even greater strength with Ethereum (ETH) leading the pack with 9% gains. Other top altcoins like XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have gained 4-10% today.
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