Rising Tariffs: US-India Trade Tensions Escalate

In recent developments, trade tensions between the US and India have intensified as US President Donald Trump hardens his stance. Trump's administration has imposed steep tariffs on Indian exports, labeling India as the 'Tariff King', a move seen as pressure to acquiesce to US demands in the proposed Bilateral Trade Agreement (BTA).

The timeline of imposed tariffs shows incremental increases, starting in late 2019, with significant hikes announced in 2025. Sectors exempt from these tariffs include pharmaceuticals, electronics, and energy products, while key Indian exports like textiles, shrimp, and gems face severe tariff increases, creating potential setbacks for exporters.

The trade policies are likely to make Indian goods more expensive, with potential cuts in exports by 40-50%, impacting approximately 55% of India's exports to the US. While India's exports are heavily taxed, other competitors enjoy lower tariffs, posing a competitive challenge for Indian exporters in the American market.

(With inputs from agencies.)