US Presidential Elections: How Trump Come Back Will Influence India-US Relations?
After a tumultuous US election campaign, US voters seem to have delivered the Republican candidate Donald Trump a second non-consecutive stint in the Oval Office. While the Democratic candidate Kamal Harris could not clear the victory margin.
Now with the victory of Trump, political analysts are gauging the potential impact on Indo-US relations. The outcomes of the US election 2024 will influence the US foreign policy, trade agreements, global market orientations and defense strategies.
The result is likely to impact defense, trade and strategic sectors as India and US are prime trading and investment partners in technology, infrastructure, renewable energy and manufacturing sectors.
Read also: US Election: Republicans Secure Senate, House Still Up In The Air
As per the analysts, Trump’s economic policies may lead the prices to go up as he wants to put tariffs on imports, which would make foreign goods more expensive. The emphasis on ‘Make America Great Again’ also pushes companies to produce more in the US, which can also raise costs. Trade and tariff wars can become a reality in the global market. Indian pharmaceutical sector, drugs, gems and jewellery could impact negatively.
Read also: Was This The Day America Decided In Favour Of Trump?
According to brokerage firm JM Financial, Trump has indicated his preferences for lowering tax rates for corporations domestically, However, he has expressed his intentions to impose nearly 60 per cent or higher tariffs on imports from China and 10-20 per cent on the rest of the world.
Mass deportation of illegal migrants, cutting down aid to Ukraine, reducing participation in NATO, continuing support to Israel and Taiwan are some of the major US foreign policy matters that can impact India’s relations with America and other countries.
Interest rate cuts delay in US can also dry up India’s Foreign Investments and can impact India’s repo rate cuts and slowdown the economic growth.
