Trump Tariffs: India Could Benefit From Global Supply Chain Pivot, Says Report

Trump Tariffs: After victory of Donald Trump in US Presidential elections, India could benefit from any re-orientation of global supply chain away from China says a report from Care Edge

As per report, Trump has proposed imposing high tariffs on imports from China, which could le to changes in global tre dynamics, creating opportunities for India. It said "India could benefit from any re-orientation of global supply chain away from China".

report highlighted Trump's plans include imposing a 60 per cent tariff on imports from China, as well as ditional tariffs ranging from 10 per cent to 20 per cent on imports from or countries.

se measures are intended to reduce United States' reliance on Chinese imports, potentially disrupting existing tre patterns. As companies look to diversify ir sourcing away from China to avoid se tariffs, India could emerge as an alternative destination for manufacturing and exports.

report said "Higher tariffs could result in disruption of global tre flows and overall weaker tre growth. y will also le to inflationary pressure in US ecomy, with urd pressure on prices of imported goods".

However, report also points out that se tariffs may trigger inflation in United States by raising prices of imported goods, which could affect global tre flows and ecomic stability.

While India stands to gain from any re-orientation of supply chains, a bro slowdown in global tre would have mixed effects on its ecomy. Weaker tre growth worldwide could dampen demand for Indian exports, affecting various industries within country.

As per report, Trump's proposed tariffs extend beyond China. president-elect has also targeted Mexico with plans to impose a 100 per cent to 200 per cent tariff on cars manufactured re.

ditionally, he has proposed a 25 per cent tax on all or imports from Mexico unless it intensifies efforts to reduce border crossings into U.S. This is aimed at preventing Chinese companies from setting up manufacturing facilities in Mexico to bypass U.S. tariffs, and it reflects Trump's broer strategy to encour job growth within American automobile and manufacturing sectors.

"Through se moves, Trump aims to prevent Chinese companies from setting up plants in Mexico to avoid US tariffs" report said.

While se potential policy shifts represent challenges to global tre, y also provide India with a strategic opportunity to attract businesses looking to shift operations away from China.

Overall, India's ability to capitalise on this shift will depend on its efforts to strengn its industrial infrastructure, improve ease of doing business, and establish itself as a reliable manufacturing hub in global supply chain.