India's trade ministry will soon embark on a cost-benefit analysis and hold consultations with stakeholders to identify areas where Indian exports can gain after the United States slapped higher tariffs on China, Mexico and Canada, a senior government official said.
"We plan to hold stakeholder consultation and do a cost-benefit analysis on US tariffs on specific nations such as China, Mexico, Canada to assess the areas where Indian exports can gain," the official said on condition of anonymity.
Trump, who will complete a month in office later this week, signed executive orders imposing a 25 percent tariff on imports from Canada and Mexico and 10 percent on top of existing levies on China.
While the decision on Canada and Mexico has been paused for a month, conditional on reaching a deal, the China tariff came into effect on February 4.
The same day, Beijing retaliated with a 15-percent duty on US coal and LNG, 10 percent on crude oil, farm equipment and cars with large engines.
"There are MFN (most favoured nation) tariffs that are applicable on all countries, then there are some additional tariffs that are imposed on certain countries, you have to evaluate, there may be gains for us (India) in terms of exports becoming more competitive, if one particular nation faces higher tariffs then in that case our exporters can also gain," the official said.
The consultation will likely take place when steeper tariffs on Canada and Mexico come into force, the official added.
"We are also telling our industry that whatever tariffs may come up, which maybe specific to those countries… we will hold consultations, and we feel given the fact we are going forward in our trade relation with US, our exports will gain," the official elaborated.
Apart from higher tariffs on specific nations, Trump has also announced a 25 percent levy on all steel and aluminium imports as well as a “fair and reciprocal plan” seeking to impose new duties on a country-by-country basis to rebalance trade relations.
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