Trump tarifs impact:
Trump tarifs impact: After the failure in the trade deal, 25 percent tariff has been imposed on India by US President Donald Trump, which has become effective from Thursday. Apart from this, due to purchasing oil from Russia, an additional 25 percent tariff has also been imposed on India, which will be applicable from August 27. Thus, the total American tariff on India will increase to 50 percent, which can have a profound impact on bilateral trade.
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What is the effect on which sector?
During the financial year 2024-25, India and the United States have a total trade of $ 131.8 billion, out of which India exported $ 86.5 billion, while 45.3 billion dollars were imported. The sectors that are expected to have the most impact after the tariff increase are: Cloth ($ 10.2 billion), diamonds and jewelery ($ 12 billion), leather products ($ 1.18 billion), shrimp fish ($ 2.24 billion), chemicals ($ 2.34 billion) and electrical machinery ($ 9 billion). According to experts, the exports to the US from these areas may decrease by 40 to 50 percent, as Indian products will become expensive in the US market due to increasing tariffs and cheap products of competitive countries will be preferred.
The Confederation of Indian Textile Industry (CITI) has expressed concern over this decision and said that it is a major setback for India’s textile industry. The situation of this industry, which is already facing many challenges, can be even weaker in the American market. Significantly, there was an increase of 59 percent in Indian textile exports, but now there is a possibility of decline. Similarly, 51.3 percent on machinery, 52.3 percent on furniture and 51.1 percent tariff on jewelery have hurt Indian exporters.
The reason for this is that the goods exported from India will become expensive in America. In such a situation, the consumption of countries whose cheap items will be available than Indian goods there will increase in America.
How much export from which sector?
According to a sea fish exporter from Kolkata, the price of shrimp fish in the US market will increase significantly after the tariff increases. Yogesh Gupta, MD of Megga Moda, said that already Indian shrimp fish costs 2.49 percent anti-dumping duty and 5.77 percent counterwelling duty. Now after imposing 25 percent additional tariffs, the total fee will be 33.26 percent, which will make it very difficult to remain in competition.
Similarly, 51.3 percent tariffs on machinery, 52.3 percent on furniture and 51.1 percent on gold goods and 51.1 percent have also been deeply hurt to India’s exporters.
A marine fish exporting businessman from Kolkata says that shrimp fish will become expensive after a new tariff in the US market. Yogesh Gupta, MD of Megga Moda, says that India’s shrimp is already 2.49 percent anti -dumping duty and 5.77 percent counterwelling duty. In such a situation, after increasing 25 percent and tariffs, it has increased to 33.26 percent from August 7.
Also read: Now 100 percent tariff bomb above the chip, why Trump is doing this? Learn what its effect on India
