Trump's Tariff War: India Faces Economic Challenge
U.S. President Donald Trump has imposed a 25% additional tariff on Indian goods due to its indirect import of Russian oil. This builds pressure for India in regional trade and could harm its GDP growth if no new trade agreement is reached within the stipulated 21-day window.
- Country:
- India
U.S. President Donald Trump's recent executive order, which imposes an additional 25% tariff on Indian goods, has sent shockwaves across the economic landscape. This decision stems from allegations of India indirectly importing Russian oil.
Economists highlight the adverse impact, with India now facing a total 50% tariff rate, placing it at a disadvantage compared to regional players like Vietnam and Bangladesh. Crucially, some sectors such as electronics and pharmaceuticals remain exempt from this additional levy.
The urgency for India to negotiate a trade agreement with the U.S. is palpable, as failure to do so could lead to a downward revision of India's GDP growth projections. Economists warn of increased downside risks if the tariffs persist into 2026.
(With inputs from agencies.)
- READ MORE ON:
- Trump
- tariff
- India
- economy
- Russian oil
- export
- trade agreement
- GDP growth
- regional competition
- U.S.
Google News