Big Decision Before PM Modi’s US Visit
Current Affairs (12 February 2025) – UPSC & Other Competitive Exams
Big Decision Before PM Modi’s US Visit – Trump Imposes 25% Tariff on Steel & Aluminium
📌 Key Points:
- Former US President Donald Trump announced a 25% tariff on imported steel and a 10% tariff on aluminium from all countries.
- This decision comes just two days before PM Narendra Modi’s US visit (12-14 February).
- The US is moving towards a "reciprocal tariff" policy, meaning it will impose import duties on products from countries that charge high tariffs on American goods.
- This move could lead to huge financial losses for India’s steel and aluminium exports.
📌 Impact on India:
- In FY 2023, India exported steel worth ₹34,984 crore and aluminium worth ₹9,620 crore to the US.
- The total share of steel-aluminium exports in India’s overall exports to the US was 6.5%.
- In January 2024, India and the US had an agreement allowing duty-free trade of 3.36 lakh tonnes of steel and aluminium.
- With the new 25% tariff, Indian exports will become expensive and less competitive in the US market.
📌 Impact on the US:
- US steel manufacturers will benefit as domestic steel demand and prices rise.
- New steel plants may take at least 3 years to set up, leading to short-term price increases.
- The US is heavily dependent on foreign imports for construction, automobile, technology, and military equipment.
- Canada, Mexico, and Brazil will be most affected as they are the top suppliers of steel and aluminium to the US.
- China produces more steel than the rest of the world combined, but the US imports very little from China, leading to a shift in global trade dynamics.
PM Modi’s Three-Day Visit to France – AI Summit Co-Chairmanship
📌 Key Points:
- PM Narendra Modi arrived in Paris for a three-day visit at the invitation of French President Emmanuel Macron.
- He will co-chair the AI Action Summit, which will include top CEOs from global tech companies.
- Bilateral talks with Macron and an address at the India-France CEO Forum are scheduled.
- This visit aims to strengthen India-France strategic partnerships in AI, defence, and trade.
🔍 Relevance for UPSC Exam:
1️⃣ US Tariff Decision – Economic Impact:
- Important for UPSC GS Paper-3 (Indian Economy & International Trade).
- The impact of US protectionist policies on global trade and India’s exports.
- Higher tariffs will pressure Indian exporters to explore alternative markets.
2️⃣ PM Modi’s France Visit – Diplomatic Importance:
- Relevant for GS Paper-2 (International Relations).
- India-France collaboration in defence, trade, and AI technology.
- UPSC interview questions may be framed on this topic in the context of India’s global positioning.
🔹 UPSC Mains Answer Writing Practice:
1️⃣ How will the US imposing tariffs on steel and aluminium impact India? Does it align with WTO regulations? (250 words)
2️⃣ Analyze India-France strategic relations, especially in defence and technology. (250 words)
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By : team atharvaexamwise