U.S. Tariff Hike Could Cripple Indian Exports
The new U.S. tariff hike on Indian goods to 50% will severely impact key Indian export sectors like shrimp, chemicals, and apparel. Some products may see up to a 70% drop in exports, significantly affecting India's market share while leaving sectors like pharmaceuticals and petroleum untouched.
- Country:
- India
In a significant policy shift, the U.S. President has escalated tariffs on Indian goods to an unprecedented 50%, as revealed in a Global Trade Research Initiative (GTRI) report. This decision could severely impact several Indian export sectors, including shrimp, chemicals, and apparel, altering India's trade dynamics with the United States.
This move positions India as a heavily taxed U.S. trade partner, surpassing both China and Vietnam, and matching Brazilian tariff levels. Major Indian exports such as shrimp, organic chemicals, and carpets are among the hardest hit, potentially causing a dramatic reduction—in some cases up to 70%—in shipment volumes to the U.S. market.
The GTRI report further outlines that specific sectors like apparel, with exports valued at $2.7 billion for both knitted and woven categories, face duties exceeding 60%. Meanwhile, Indian diamonds, gold, and jewelry, prominent exports to the U.S., are now burdened with a 52.1% duty. Still, some sectors like pharmaceuticals and smartphones remain exempt, maintaining a competitive edge under the new tariffs.
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