Impact of US Tariffs on Indian Exports: A Looming Trade Crisis
The USA's steep 50% tariffs on Indian imports will severely affect labour-intensive sectors such as shrimp, apparel, leather, and gems. This economic strain threatens jobs and India’s export market competitiveness. Exporters and trade organizations urge the Indian government for strategic interventions to mitigate the impact.
- Country:
- India
The United States' steep tariffs, set at 50% on Indian goods, notably shrimp, apparel, leather, and gems, present a significant blow to India's export industry. This decision, anticipated to disrupt the flow of goods to the US, is largely seen as a formidable trade barrier.
Experts in the sector express deep concerns over job losses and diminished competitiveness globally. For instance, the apparel industry faces a tariff disadvantage of 30-31% compared to other competitors, a gap considered impossible to bridge. Meanwhile, the diamond cutting industry in Gujarat faces uncertainty, threatening jobs across the state.
With about two-thirds of India's exports to the US now burdened by these heavy tariffs, exporters plead for government interventions. Proposals include a moratorium on loan payments and market diversification through enhanced trade agreements, spurring calls for unified action among trade bodies and government agencies.
(With inputs from agencies.)
Google News