India could emerge as a key beneficiary of the US’s latest tariff policy, potentially facing lower tariffs than other Asia-Pacific nations, according to Arihant Capital. The report suggests this may attract more foreign investment and boost India’s manufacturing capabilities, despite the US push to reshore critical industries.
US President Donald Trump. File Pic
Amid the global outrage and trade deal talks, India could emerge as a major beneficiary of the United States' latest tariff policy. The tariff policy by the US may impose lower tariffs on India compared to several other countries in the Asia-Pacific region, according to a report by Arihant Capital.
The report also asserted that India is in a favourable position to attract more foreign investment and strengthen its manufacturing capabilities as global trade flows begin to shift impressively.
The report by a financial institute stated that "the US may impose lower tariffs on India compared to many other APAC countries, positioning India to attract more investment."
As reported by news agency ANI, countries like Cambodia and Vietnam would likely be slammed by higher tariffs. On the other hand, India could benefit from trade and investment redirection, supported by ongoing bilateral agreements.
The report also pointed out that recent trade developments, such as the signing of the UK-India Free Trade Agreement in May and the ongoing negotiations with the European Union, are likely to boost India's position as a global manufacturing hub, which will ultimately help India’s economy significantly.
However, the report cautioned that the US government's push to restore key manufacturing sectors may limit the overall benefits for India.
Earlier on Wednesday, Donald Trump announced a new list of tariffs targeting 14 countries. Products from Algeria, Libya, Iraq, and Sri Lanka will face a 30 per cent tariff, while Brunei and Moldova will see a 25 per cent tariff, as per news agency ANI.
The new tariff list also indicates that goods from the Philippines will attract a 20 per cent tariff. While Brazil has been hit the hardest, with a steep 50 per cent punitive tariff, especially on copper.
As reported by ANI, President Trump recently extended the tariff implementation deadline to August 1.
In the meantime, Trump has sent formal letters to the governments of the affected countries, informing them of the specific tariff rates that will apply, according to the report by a financial institution.
On July 8, Trump also shared letters sent to Japan's Prime Minister Shigeru Ishiba and South Korea's President Lee Jae-myung. The letter shared by the US president, according to the report, stated that both countries would face a 25 per cent tariff from August 1.
However, Trump later confirmed that similar letters had been sent to Malaysia and Kazakhstan, which will also face 25 per cent tariffs.
The report noted that India's relatively better treatment under the new US tariff regime could serve as a significant opportunity for the country to attract companies to set up units in India and ultimately make India’s economy grow rapidly in the coming years.
(With ANI Inputs)
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