USA President Donald Trump: After India’s 47th President Donald Trump came to power, discussions regarding India’s attitude towards India have intensified. Everyone is keeping an eye on Trump’s important decisions on many issues like threat to BRICS countries, change in citizenship law, strict immigration policy, America First policy.
America first policy
President Donald Trump’s America First policy can be disastrous for many countries. Trump has often raised the slogan of Make America Great Again in his speeches. Even in Monday’s address, the focus remained on America in all decisions related to economic activities. India and America are the two largest trading partners in the world. The trade figure between America and India in 2022 was $191.8 billion. This year America exported $73 billion to India and imported $118.8 billion.
fear of tariffs
Trump had earlier said that India is imposing higher tariffs on our goods. Trump has announced to impose 25 percent tariff on Canada and Mexico from February 1. If Trump takes such a step for India too, there is a fear that exports will be affected. Earlier, during Trump’s first term, America had withdrawn the Generalized System of Preferences from India. This had an adverse impact on business.
Will the rupee weaken?
The dollar may strengthen due to Trump’s pro-inflationary policies. Due to which there is a fear of weakening of the rupee. At present, the rupee is trading at its lowest level against the dollar. Import cost will increase due to weak rupee. Due to which there is a fear of increasing inflation. FDI in America was recorded at $3.7 billion in 2022. Which was more than 7 percent in 2021. As the value of the dollar increases, investment will become more expensive for India.
Strict stance on BRICS
BRICS countries want to break the dominance of dollar-denominated financial transactions. They are considering alternative currencies. This decision is hurting America. India is a founding member of BRICS. After becoming the President, Trump has attacked the BRICS countries and asked that as a BRICS nation… are they thinking about working according to his ideas? Then 100 percent tariff will be imposed on them.
Impact of sanctions on Iran-Russia
The US has banned crude oil transactions with Russia and Iran. India buys crude oil in large quantities. This decision of America directly and indirectly affects India, which is dependent on imports for 80 percent of its crude oil consumption. However, India continues to buy crude from these two countries as per its interest. Which may have a negative impact on relations with America.
H-1B Visa, Immigration and Citizenship
President Trump has taken a tough stance on illegal immigration into the United States. Their America First policy could have a negative impact on H-1B visas. There is a proposal to double the minimum salary limit for H1B visa. Which can increase from $60,000 to $120,000 annually. Due to this, companies will reduce H-1B visas. Apart from this, Trump was advocating the removal of birthright citizenship laws. If this law is removed, millions of Indians living in America may be affected. This proposal is against the 14th Amendment of the US Constitution.
