India is preparing for a severe hit to its international trade when high US tariffs on a variety of Indian goods go into force on Wednesday.
In addition to highlighting the shaky commercial relations between the two nations, the action puts more than half of India’s exports at risk to its biggest market.
Prior to signing an executive order earlier this month, President Donald Trump had declared a 25% duty on Indian commodities. However, because of India’s purchases of Russian oil, he has imposed an extra 25% tariff. As a result, the United States’ total tariffs on its ally now stand at 50%.
Labor-intensive industries including textiles, jewelry, leather goods, food, and autos are predicted to be the most affected, according to estimates from the Global Trade Research Initiative, a think group located in New Delhi.
The founder of the research tank and a former Indian trade official, Ajay Srivastava, stated that the new tariff regime is a strategic shock that threatens to destroy India’s long-standing position in the US, leading to job losses in export-driven hubs and diminishing its contribution to the industrial value chain.
Also Read:
Medhat Elabd: Driving Financial Foresight Through Trust and Precision
