Sweeping Tariffs: US Trade Policy Shakes India Export Sector
The US imposition of a 25% tariff affects half of India's $86 billion exports. Textiles, gems, shrimp, and more face today's tariffs. Pharma and electronics remain exempted. Immediate government support and exploration of new markets are necessary to mitigate impacts. The move is part of Trump's broader protectionism policy.
- Country:
- India
The United States has imposed a 25% tariff on half of India's exports, significantly impacting sectors like textiles, gems, and shrimp. While pharmaceuticals and electronics enjoy exemptions, the latest tariffs are a result of President Donald Trump wielding protectionist policies that have sparked global trade tensions.
Despite the looming hurdles for Indian exporters, sectors like finished pharmaceutical drugs and electronics will remain unaffected by these duties. This distinction offers a ray of hope for businesses as they brace for economic impacts that encourage diversification and push for government intervention.
Industry leaders, including Sudhir Sekhri and Yadvendra Singh Sachan, stress the urgent need for strategic maneuvering and diversification. Their call aligns with the Federation of Indian Export Organizations, which seeks special considerations for goods currently in transit. The broader implication reflects a change in India-US trade surplus that has evolved over recent years.
(With inputs from agencies.)
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