As per his election promise, US President Donald Trump has decided to impose additional tariffs on Mexico, Canada and China. He has certainly threatened India, but has not yet taken any decision regarding Indian products. It is possible that he may take a similar decision regarding Indian products as well.

America's biggest trading partner

However, the Indian government is busy making a strategy to counter any such move. In this regard, discussions are going on between the Ministry of External Affairs, Ministry of Finance, Ministry of Commerce, Ministry of Heavy Industries and some other government agencies, so that a comprehensive strategy can be made in case the above situation arises. Since America is India's biggest trading partner, the government is following the policy of moving forward thoughtfully.

Deduction in duty on import of foreign bikes

Some announcements made by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26 are also being seen as sending positive signals to the new US government. Especially giving relief from civil liability law to companies setting up nuclear power plants in India and reducing the duty on import of foreign two-wheelers.

What is the proposed fee percentage

President Trump has raised the issue of imposing higher duties on the import of American two-wheelers in India several times in the past. In the general budget, it has been proposed to reduce the customs duty on two-wheelers with engines of more than 1,600 cc capacity from 50 to 40 percent, and the duty on import of semi-knocked down kits for two-wheelers (bringing parts manufactured abroad and assembling them in the country) from 25 to 20 percent. American companies like Harley Davidson are expected to benefit the most from this.

Finance Ministry said – we are ready

Top officials of the Finance Ministry say that it is still uncertain what action the new US government will take regarding India. But we are ready and discussions are going on between various ministries about what our response should be. The government's decision to give relief to nuclear power plants in the civil liability law in the general budget is being linked to the upcoming US visit of PM Narendra Modi.

American companies will be able to invest in India

Just recently, the US government had decided to remove India's agencies related to nuclear energy technology from its banned list. With the relief given to nuclear power plants, American companies may now be ready to invest in India. Let us tell you that PM Modi is likely to visit America this month. This was announced by President Donald Trump himself.