Budget 2025: Will Donald Trump's policies shape India's Budget? THESE American goods may become cheaper

With Donald Trump back as the US President, global trade is expected to see major changes. According to reports, the US may reduce tariffs on its own products, making them cheaper in international markets. This could pressure countries like India to lower import duties on expensive American goods.

Reports suggest that Finance Minister Nirmala Sitharaman might announce tariff cuts on US imports in the upcoming Union Budget on February 1. This would benefit American exporters while making imported goods like steel, high-end motorcycles, and electronics more affordable for Indian consumers.

The US is one of India’s biggest trading partners. In 2023-24, trade between the two nations crossed $118 billion, with India enjoying a trade surplus of $41 billion. The US buys a significant portion of India’s agricultural exports, including 18 million tons of rice in 2024.

During his campaign, Trump warned BRICS nations—including India, China, and Brazil—that if they introduced an alternative currency to challenge the US dollar in trade, they could face 100% tariffs on exports to the US. This could make Indian goods significantly more expensive in American markets, reducing their demand.

With global trade tensions rising, India may have to rethink its tariff policies to maintain a balanced trade relationship with the US while protecting its domestic industries.