New Delhi [India], March 29 : Trading partners of the US, particularly those emerging market economies where the tariff rates faced by US exporters exceed those charged on US imports, are at risk due to the Trump administration's impending reciprocity plans, Fitch Ratings said in a report.
Fitch Ratings expects the US administration's tariff review, effective April 2, to result in higher tariff rates.
"There is a high risk that tariffs ensnare many U.S. trading partners, particularly those emerging market economies where the tariff rates faced by U.S. exporters exceed those charged on US imports from these countries," said the global rating agency.
Emerging market economies such as India, Brazil, Thailand, Malaysia, South Africa, Turkey, Vietnam and Indonesia, impose notably higher tariffs on exports from the US relative to tariffs imposed by the US on imports from these countries, the rating agency said.
Fitch has compared tariff rates faced by US exporters in trade partner markets in 2023 with the tariff rates paid by US importers on goods sourced from those trade partners.
Fitch said these trade partners of the US are at risk of President Donald Trump's reciprocal tariffs plan.
Beginning April 2, the Trump administration intends to implement reciprocal tariffs on trading partners as part of the "Fair and Reciprocal Plan".
Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.
The US and India, however, are currently negotiating a broad-based trade agreement, taking into account the entire trade relationship rather than individual products.
India's Commerce Minister Piyush Goyal was in the US earlier this month. That followed Trump-Modi's plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025. The two leaders had committed to designating senior representatives to advance these negotiations.