Trump hits three targets with one arrow, a big blow to China and Canada; India gets good news!

Trump hits three targets with one arrow, a big blow to China and Canada; India gets good news!

Trump has started a trade war with China in his first term as President. China's exports to the US market have been continuously declining since 2018, but it is still more than India's total exports. Trump has also given a shock to Canada. Trump announced a 25 percent duty on goods coming to the US from Canada.

 America's newly elected President Donald Trump on Tuesday declared a trade war with Mexico, Canada and China. He said that as soon as he takes over as President, a 25 percent duty will be imposed on all goods coming to the US market from Mexico and Canada and an additional 10 percent duty will be imposed on all goods coming from China.

Good news for India

Trump is going to take power in the third week of January. This decision of Trump can be a big benefit to Indian exports because these three countries account for more than 40 percent of America's total imports. China exported goods worth $ 448 billion to America last year while Mexico exported goods worth $ 457 billion. Whereas India's total exports stood at $ 437 billion in the financial year 2023-24.

India will get a big chance

India exported goods worth 82 billion dollars to the US in the last financial year. Due to the imposition of import duty, the products of China, Mexico and Canada will become expensive in the US market, which may reduce their demand there. This will give India an opportunity to increase the export of many products like electrical and electronics, leather, apparel, machinery and toys because Indian goods will be cheaper than Chinese products in the US market.

Car export from india

On the other hand, Mexico exports the most cars and automobile parts etc. to the US. Experts say that companies like Hyundai, Honda, Nissan can start manufacturing cars in India according to American requirements because exporting cars from India will be beneficial for them.

Shock to China-Canada

Canada mainly exports petroleum, gas and food items to America. In such a situation, new possibilities are being seen in the American market for Indian agricultural products. However, China has been working in this direction for the last several years to ensure that the supply of goods continues in the American market despite the increase in duty.

Chinese companies are rapidly establishing themselves

V. Naushad, founder and footwear exporter of Walkaru, a company with a capacity to produce six lakh pairs of footwear daily, said that Trump's decision will definitely bring opportunities for India, but we should also keep in mind that many Chinese companies are already manufacturing in America. At the same time, Chinese companies have been rapidly establishing themselves in countries like Indonesia, Vietnam, Cambodia for the last several years and China can easily send its goods from these countries to the American market.

Incentives have to be taken care of

Federation of Indian Export Organisations (FIEO) chairman Ashwini Kumar said that there is an opportunity to increase the export of many products in the US market, but the government will also have to support in this. Import duty and other incentives on raw materials will have to be taken care of.