Blog Dhabkar News February 17, 2025 0 Comments

Trump’s Trade War Tactics : Will Markets stay Volatile Until April?

Donald Trump’s second term has brought significant changes to the global political and economic landscape. Focused on the “Make America Great Again Policies” agenda, Trump is pushing for aggressive trade policies, energy independence, and a shift in foreign relations. This article explores how these strategies are impacting international markets, U.S.-India trade relations, and geopolitical dynamics. Stay informed with the latest India news.

Aggressive Trade Policies in Donald Trump’s Second Term

In his second term, Donald Trump has implemented bold trade policies aimed at reducing the U.S. trade deficit. In February 2025, he imposed a 25% tariff on goods from Mexico and Canada and a 10% tariff on imports from China. These tariffs are designed to protect American industries and encourage manufacturing within the U.S.
Trump’s Trade Policies

Trump’s administration is also targeting countries with value-added tax (VAT) systems, arguing that they create unfair trade advantages. This move could impact trade relations with major economies, including the European Union, India, and Japan.
Details on the Impact of VAT on Global Trade

Donald Trump’s second term has significantly affected U.S.-India trade relations. The bilateral trade between the two countries exceeds $190 billion, with India holding a trade surplus. In 2024, U.S. goods exports to India were valued at $41.8 billion, while imports from India totaled $87.4 billion.

India’s pharmaceutical sector, the third-largest exporter to the U.S., could face challenges due to Trump’s reciprocal tariffs and stringent trade policies. These changes may lead to increased costs and supply chain disruptions, impacting both economies.
Learn More about the Impact of Tariffs on Global Trade

Energy Production and Global Oil Markets

Donald Trump’s second term emphasizes energy independence with policies like “drill, baby, drill.” The goal is to boost U.S. oil and gas production, making America a leading energy exporter. This strategy is expected to intensify competition among global oil producers and impact international oil prices.

India, which imports over 4.8 million barrels of crude oil daily, may face economic challenges due to fluctuating energy costs. Trump’s policies are likely to influence global markets, leading to increased competition and potential price instability.

Geopolitical Shifts in Donald Trump’s Second Term

During his second term, Donald Trump has shifted U.S. foreign policy by reducing interference in other countries’ internal matters. His administration focuses on domestic priorities, including downsizing federal agencies and enforcing strict immigration reforms. These actions align with Project 2025, a conservative policy blueprint.
Find Out More about Project 2025

These policy changes have sparked global reactions. While supporters believe they safeguard American interests, critics worry about economic disruptions and diplomatic tensions. The global impact of Trump’s strategies will continue to unfold in the coming years.

America is taking steps to increase tariffs to close this trade gap with all countries. Already, India’s rupee has collapsed against the US dollar and is close to a historic new low of 88. Which will make imports more expensive.

With the possible big deal in India’s nuclear energy sector with America, India’s mission to create huge capacity in the renewable energy sector and become self-reliant is also in danger of being hampered by the importance given to Trump’s drill baby drill and nuclear energy. So it is possible that there will be a risk to the capital investment in the renewable energy sector and new projects may get hampered. There is a full possibility of major upheaval in the world market, oil, currency market in the coming days.