Tariff Trouble: India's Export Sectors Brace for Impact
India's export sectors face a significant hurdle as the US imposes a 25% tariff. Key industries like leather, textiles, and shrimp are set to suffer financial blows. Exporters hope that ongoing trade negotiations between the two countries will bring relief and address these tariff challenges.
- Country:
- India
Indian export sectors, including leather and textiles, are bracing for a significant impact as the United States implements a 25% tariff on certain goods. This new duty, effective from August 7, replaces the existing 10% baseline tariff, industry experts warn.
According to Ajay Srivastava, founder of the think tank GTRI, India's goods exports may decrease by 30% from USD 86.5 billion in 2025 to USD 60.6 billion by 2026. The hefty tariff will affect various sectors, including textiles, gems, shrimp, leather, chemicals, and machinery, posing a substantial threat to Indian exports.
Despite this, there are some measures to lessen the blow. Goods in transit before the effective date will face a lower tariff, and items cleared for US consumption before October 5 will avoid additional duties. Exporters are awaiting the finalization of an India-US bilateral trade agreement to tackle these tariff concerns.
(With inputs from agencies.)
Google News