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Indian exporters may face higher tariff under Trump’s America First agenda

The US stands as India’s largest trading partner, with annual trade exceeding $190 billion.

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With Donald Trump all set to become the 47th President of the United States, Indian exporters may face high customs duties on products such as automobiles, textiles, and pharmaceuticals if the new administration pursues its “America First” agenda, according to trade experts.

The experts have also indicated that Trump might tighten H-1B visa regulations, which could raise costs and hinder growth for Indian IT companies. With over 80 per cent of India’s IT export revenues stemming from the US, these changes could make the sector vulnerable to shifts in visa policy.

The US stands as India’s largest trading partner, with annual trade exceeding $190 billion.

Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said that Trump might extend tariffs beyond China to include India and other nations, citing Trump’s earlier statement that India is a large tariff abuser and his October 2020 statement labeling the country as the tariff king. These comments hint at the likelihood of more challenging trade negotiations during Trump’s second term.

“His America First strategy is expected to advocate for protective measures, including reciprocal tariffs on Indian goods, which could hinder key exports such as automobiles, textiles, and pharmaceuticals, diminishing their competitiveness in the US market,” Srivastava stated.

However, he also said that a tougher US policy towards China could potentially open up new markets for Indian exporters.

The bilateral trade in goods between the two countries stood at $120 billion in 2023-24 as against $129.4 billion in 2022-23.

A GTRI report had earlier stated that according to WTO’s World Tariff Profiles 2023, the US also imposes high duties on items like dairy products (188 per cent), Fruits and vegetables (132 per cent), cereals and food preparations (193 per cent), oilseeds, fats and oils (164 per cent), beverages and tobacco (150 per cent).

International trade expert Biswajit Dhar remarked that Trump is likely to increase tariffs across different sectors to fulfill his MAGA (Make America Great Again) mandate. “With Trump’s return to power, we are headed toward a new era of protectionism,” Dhar predicted, pointing out that sectors such as electronics might be adversely affected.

Furthermore, Dhar raised concerns about the future of the Indo-Pacific Economic Framework for Prosperity (IPEF), emphasising, based on Trump’s past decision to withdraw from the Trans-Pacific Partnership (TPP), there may be uncertainty surrounding IPEF’s stability. Launched on May 23, 2022, the 14-nation bloc could face challenges ahead.

Ajay Sahai, Director General of the Federation of Indian Export Organizations (FIEO), stated, “While we might see Trump advocating for more balanced trade, disputes around tariffs are likely to arise amid rising protectionist trends and stricter immigration policies.”

Agneshwar Sen, Partner for Tax and Economic Policy (International Trade) at EY India, said that the US might strategically implement high tariffs to promote domestic manufacturing and adjust existing supply chains, potentially leading to increased tariffs on Indian exports such as textiles, chemicals, pharmaceuticals, and engineering products.

“India may need to look for alternative markets, which would be challenging, or consider retaliatory tariffs on US exports. Alternatively, we should prepare for a trade deal that is appealing to the US, not only protecting our existing interests but also facilitating new opportunities,” Sen noted.

Additionally, Srivastava pointed out that Trump’s concerns regarding outsourcing could result in policy changes affecting IT exports. H-1B visa regulations are crucial for facilitating the movement of skilled IT professionals from India. “A stricter immigration approach from Trump could potentially alter visa rules, thereby raising costs for Indian IT companies,” he explained, PTI reported.

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DMK leader’s son arrested after car rams family in Krishnagiri, one dead

A 20-year-old son of a DMK leader has been arrested for allegedly driving a car into four members of a family in Krishnagiri, killing assistant labour inspector Sivamoorthy.

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DMK leader

A 20-year-old son of a leader from the Dravida Munnetra Kazhagam (DMK) has been arrested for allegedly mowing down four members of a family following a heated argument in Tamil Nadu’s Krishnagiri district. One person died in the incident, police said.

The deceased has been identified as Sivamoorthy, an assistant labour inspector and a resident of Krishnagiri. According to the police, the incident occurred outside his residence after the accused, identified as Adithya, objected to a two-wheeler parked on the road.

Police said Adithya was driving the car and began honking as the two-wheeler was blocking the road. Sivamoorthy and his family members reportedly stepped out to move the vehicle. During the exchange that followed, an altercation broke out.

Investigators allege that Adithya then rammed his car into Sivamoorthy, his son Kirubakaran, daughter-in-law Amsavalli and granddaughter Nilani. Sivamoorthy sustained severe injuries and later succumbed. The others were injured in the incident.

Besides Adithya, two of his friends — Rithik Kumar and Harish — who were present in the car at the time, have also been arrested. A case of murder has been registered against the trio and further investigation is underway.

Kirubakaran, recounting the incident, said the family had attempted to move the parked two-wheeler when the accused damaged it. He alleged that the men appeared intoxicated and tried to assault them with a stick before the vehicle was driven into the family.

Amsavalli said they had tried to defuse the situation peacefully but the confrontation turned violent, resulting in her father-in-law’s death and injuries to her child.

A police officer stated that Adithya’s father is a local functionary of the DMK in Krishnagiri district. The victim’s family has demanded strict action in the case.

Reacting to the incident, state BJP chief Nainar Nagendran criticised the ruling Dravida Munnetra Kazhagam, questioning the state government over the episode and alleging that party functionaries were misusing their influence.

Police said the probe is ongoing.

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Security tightened across Delhi metro stations after bomb threat emails

Delhi is on high alert after bomb threat emails targeted metro stations, the Red Fort and the Assembly. Authorities confirmed the threats were hoaxes but tightened security as a precaution.

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Delhi Metro

Security has been intensified across all metro stations and major installations in the national capital after a series of bomb threat emails were received on Monday. Authorities later confirmed that the threats were hoaxes following detailed inspections by security agencies.

According to officials, several key institutions — including the Delhi Secretariat, Delhi Assembly, the Red Fort and two schools — received threatening emails earlier in the day. Extensive searches were carried out at all the locations mentioned in the messages, but nothing suspicious was found.

A senior police officer said cyber teams are working to trace the origin of the emails. Preliminary findings suggest that the senders may have used Virtual Private Networks (VPNs) in an attempt to conceal their identities and mislead investigators. Officials expressed confidence that those responsible would be identified.

Metro stations under heightened surveillance

Following specific references to metro services in the emails, security arrangements were strengthened across the entire network of the Delhi Metro Rail Corporation. Additional personnel have been deployed at stations, and anti-sabotage checks are being conducted.

Police said random frisking of passengers and intensified CCTV surveillance are being carried out as part of precautionary measures. Bomb disposal squads and dog squads were stationed at sensitive sites, including the Red Fort, Delhi Secretariat and the Assembly complex.

The threatening emails reportedly included the slogan “Delhi banega Khalistan” and warned of explosions at an Army school, the Assembly and the Red Fort at specific times during the day. Officials stated that all mentioned locations were thoroughly checked and declared safe.

Authorities also coordinated with counterparts in neighbouring states to enhance security at metro stations falling under their jurisdictions.

While no explosives were found, officials said the tightened security arrangements will remain in place as a precaution. Cyber teams continue efforts to trace the IP addresses and identify those behind the threat emails.

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JNU protest turns violent as Left and Right student groups trade charges

A late-night protest at JNU turned violent as Left and ABVP student groups accused each other of stone-throwing and attacks near the East Gate.

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JNU Protest

Tension gripped the campus of Jawaharlal Nehru University in the early hours of Monday after a protest march allegedly spiralled into violence, with rival student groups accusing each other of triggering the unrest.

Students claimed that the incident occurred around 1.30 am when a confrontation broke out during a march called by the Jawaharlal Nehru University Students’ Union. The protest, named “Samta Juloos”, was headed towards the East Gate and was organised to demand the resignation of Vice-Chancellor Santishree Dhulipudi Pandit and the withdrawal of a rustication order.

According to protesters, several students were injured after alleged stone-throwing during the clash. They alleged that the university administration did not intervene during the march and instead permitted members of the Akhil Bharatiya Vidyarthi Parishad to confront demonstrators.

However, the ABVP denied the allegations and countered that Left-affiliated organisations instigated the confrontation and were spreading misinformation about the events.

Left-backed groups, including the All India Students’ Association, claimed that ABVP activists targeted the JNUSU encampment and hurled stones at “unarmed students”, leading to multiple injuries.

Videos shared by students on social media reportedly showed chaotic scenes near the protest site, with members of rival groups engaged in heated exchanges and physical scuffles.

University authorities did not immediately respond to queries regarding the incident. Students said the situation on campus remained tense following the overnight clashes.

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