Could Trump's new global taxes be a new opportunity for 'tariff king' India?
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Hereโs a clearer picture of what Trumpโs new global tax and tariff strategy meansโand whether India, often branded โtariff king,โ might actually stand to gain. ๐งพ Trump's Global Tax Moves & Tariff Strategy Withdrawal from OECD global minimum tax (Pillar Two) Trump has effectively removed the U.S.Read more
Hereโs a clearer picture of what Trumpโs new global tax and tariff strategy meansโand whether India, often branded โtariff king,โ might actually stand to gain.
๐งพ Trumpโs Global Tax Moves & Tariff Strategy
Trump has effectively removed the U.S. from implementing the OECD/G20 global minimum corporate tax framework. India had not yet adopted those rules, so the withdrawal has limited direct impact on Indiaโs tax revenues or policiesโฏ(Business Standard, Wikipedia).
Trump may invoke Section 891 of the U.S. tax code to impose โreciprocal taxesโ on countries with discriminatory or extraterritorial taxes affecting U.S. firms. Indiaโs Equalisation Levy (digital services tax) could make it a targetโฏ(Reddit).
The U.S. has slapped 25% tariffs on Indian imports, citing issues from purchases of Russian oil to trade practices. These measure look less economic and more politicalโtargeting allies like India for domestic signalingโฏ(Financial Times).
๐ฎ๐ณ Does this open an opportunity for India?
โ Strategic advantages โ not paradoxical gains
โ ๏ธ Risks remain significant
๐ Bottom Line
India could turn Trumpโs trade turbulence into opportunity, but only if it pursues bold reformsโreducing import barriers, boosting domestic competitiveness, expanding export markets beyond the U.S., and accelerating manufacturing reforms.
Trumpโs exit from the global tax deal doesnโt directly benefit India, but his tariff threatsโif they force India to shift policiesโmight. Whether that amounts to India benefiting as โtariff kingโ remains debatable: the real upside lies in India transforming those pressures into global supply-chain and policy momentum.
Let me know if youโd like deep dives into specific sectors (textiles, pharma, digital services) or potential trade frameworks India could tap into.
See lessThese tariffs are being seen as Trump's bargaining chip in trade talks with India.
These tariffs are being seen as Trump's bargaining chip in trade talks with India.