US Tariffs Shake India-US Trade Ties
The USA's decision to impose a 25% tariff on Indian-origin goods, effective August 7, threatens to significantly impact India's exports. Exemptions include pharmaceuticals, energy products, and specific electronics. Trade may suffer unless a deal is reached. India's exports could drop sharply from USD 86.5 billion to USD 60.6 billion.
- Country:
- India
The United States has made a contentious decision to levy a 25% tariff on goods originating from India, slated for implementation on August 7. Think tank Global Trade Research Initiative (GTRI) emphasized that this move could drastically impact the volume of India's exports to America.
According to a comprehensive review by GTRI, the White House issued an executive order stipulating that the tariff would not apply to key product categories. These exemptions include pharmaceuticals, active pharmaceutical ingredients, energy products, and numerous electronics, which remain unaffected. Despite these exemptions, the overall economic impact could be severe, warns GTRI Founder Ajay Srivastava.
With a decline in export figures anticipated from USD 86.5 billion in FY 2025 to USD 60.6 billion in FY 2026, the stakes are high for India unless negotiations for a deal commence swiftly. This development marks a significant phase in the trade relationships between India and the US.
(With inputs from agencies.)
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