India is expected to bear less of the burden of looming import duties under Trump’s second US presidency, due to its regional strategic importance to Washington, but New Delhi’s diplomatic balancing act with the West and other powers such as China could be severely tested.

Trump, who started a trade war with China in his first term, promised to impose a 10 percent tax on imports from all countries and a 60 percent tax on imports from China, and the consequences are likely to spread to global supply chains. He had also previously expressed concerns about India’s high import duty.

India’s average import duty is 17 percent, but can reach 100 percent or more on certain types of vehicles and products such as U.S. whiskey.

But observers are optimistic that the returning US president will reach a compromise given Delhi’s importance in the Indo-Pacific.

“It will probably focus on China rather than India. It will negotiate with India and use back channels to resolve any trade issues,” said Vivek Mishra, deputy director of the Strategic Studies Program at the Observer Research Foundation.

However, there are also concerns about what Trump’s second term will mean for India; Because Trump’s previous administration initiated the withdrawal of American troops from conflict-ridden Afghanistan, which increased security concerns for Delhi.