US Tariffs Pose Major Threat to Indian Exports
The US has imposed a 50% tariff on Indian goods, which could significantly hinder India's exported goods to the American market. This decision, reportedly a reaction to India's purchase of Russian oil, poses a threat to a large portion of India's $86.5 billion annual exports to the US.
- Country:
- India
The United States has introduced a steep 50% tariff on imported goods from India, projecting severe financial implications for India's export market. These additional duties are expected to make Indian products much more expensive in the American market, potentially slashing exports by up to 50%, according to the Global Trade Research Initiative (GTRI).
On August 6, the US government unveiled that it would add a 25% tariff on top of an existing 25% duty, citing India's continued procurement of Russian oil as the primary reason for this measure. With these tariffs, India has become one of the most heavily taxed trade partners of the US, surpassing countries like China, Vietnam, and Bangladesh.
Ajay Srivastava, founder of GTRI, highlighted the apparent double standard, noting that China, which purchased even more oil from Russia, has not faced similar penalties. He suggests the US refrains from targeting China due to their reliance on critical materials for defence and technology sourced from China. Simultaneously, India could see dire consequences for its $86.5 billion in annual US exports, ranging from textiles to machinery.
(With inputs from agencies.)
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