U.S. President-elect Donald Trump seems to have focused on Asian countries, once again advocating the “reciprocal tariff” policy to address trade imbalances and broader international policy. 

At a recent press conference at Mar-a-Lago, Trump stated that India and Brazil impose high tariffs on American products, emphasizing the need for fairness in global trade. 

He said, “If they tax us, we tax them the same amount”. “India charges us 100 or 200 percent on some products, but we charge them nothing in return. That’s going to change,” he repeated, underscoring his push for fair trade and U.S. economic gain. 

Trump’s proposed measures, described as “fair but firm” by Commerce Secretary nominee Howard Lutnick, aim to boost domestic revenues and support American industries.

Trump’s policy also includes extending tariffs on Chinese solar products, building on Section 301, first introduced in 2018. The Biden administration doubled solar cell tariffs to 50% in May 2024. Trump plans to go further, imposing a 50% tariff on Chinese polysilicon and wafers, key components in the solar module supply chain.

The White House justified these tariffs to counter China’s “overcapacity,” which it claims suppresses global prices and hampers non-Chinese manufacturers. While these policies aim to protect U.S. solar manufacturers, they risk disrupting global supply chains.

For India, Trump’s policies present both opportunities and challenges. As the U.S. restricts Chinese solar imports, Indian manufacturers may gain a competitive edge by filling the supply gap. However, India’s heavy reliance on Chinese polysilicon and wafers could increase costs for domestic solar projects if global prices surge.

India’s ambitious renewable energy targets of 500 GW by 2030 could face delays as rising input costs impact project timelines. To limit the risks, India may accelerate efforts to localize its solar supply chain, reducing dependence on Chinese imports and ensuring stability in the trade disruptions.

Trump’s renewed focus on Asia signals a major shift in global trade dynamics. While the U.S. aims to secure economic gains, nations like India must carefully navigate the ripple effects, balancing rising costs with emerging opportunities in the global solar industry.

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