US-India Trade Tensions Escalate: Trump Imposes 25% Tariff
The US has imposed a 25% tariff on Indian goods, impacting diverse sectors, as trade deal negotiations face hurdles. FICCI and industry experts express concern and disappointment, fearing negative repercussions on India’s exports and economic growth. Market reactions and strategic responses remain pivotal in the evolving trade scenario.
- Country:
- India
In a controversial move, US President Donald Trump has announced a 25% tariff on Indian goods, a decision that has been met with disappointment from India's Federation of Indian Chambers of Commerce & Industry (FICCI). Trump's imposition is expected to significantly impact India's export sectors.
The timing of Trump's decision just before the August 1 deadline reflects ongoing trade tension dynamics, with previous negotiations failing to yield a resolution. India's reluctance to open its agricultural and dairy markets to US demands was a sticking point in trade discussions aimed at striking a bilateral agreement.
Experts suggest the tariff could have a varied impact across sectors, with India's economy bracing for potential negative outcomes. Financial markets are predicted to react unfavorably, adding to the complexity of US-India trade relations which target $500 billion by 2030. The looming penalties add further uncertainty.
(With inputs from agencies.)
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