India's Export Industries Brace for Impact as US Imposes Hefty Tariffs
A new 50% tariff by the US on Indian goods, resulting from India's ongoing purchase of Russian oil, is expected to heavily impact several key domestic export sectors including textiles, footwear, and jewelry. The tariff increase risks a 40–50% cut in US-bound exports and has raised concerns among Indian exporters.
- Country:
- India
The imposition of a 50% tariff by the United States on select Indian goods has sent shockwaves through India's export sectors. The move, announced by US President Donald Trump in response to India's purchase of Russian oil, is set to drastically affect industries such as textiles, leather, footwear, gems, jewelry, and shrimp.
Starting in August, the penalizing tariff will increase the cost of Indian goods in the US, potentially slashing exports by up to 50%, industry experts say. Kolkata-based seafood exporter and MD of Megaa Moda, Yogesh Gupta, highlighted that Indian shrimp, already burdened with anti-dumping and countervailing duties, will see a further increase in cost burden, rendering it less competitive against exports from countries like Ecuador.
As the bilateral trade agreement talks between the US and India continue, Indian exporters hope for resolutions to ease the tariff challenges. The Confederation of Indian Textile Industry has called for governmental intervention to mitigate the adverse impacts on the already strained export landscape amid the evolving trade dynamics.
(With inputs from agencies.)
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