Trade Turbulence: Indian Exports Face Hefty U.S. Tariffs
Indian exporters are preparing for challenges as the U.S. imposes a 25% additional tariff on Indian-origin goods, potentially leading to a total duty of 50%. The move is a response to India's increased Russian oil purchases. The tariffs could significantly impact nearly 55% of India's merchandise exports to the U.S.
Indian exporters are on high alert following a U.S. Homeland Security notification that confirms the imposition of a 25% additional tariff on Indian-origin goods, starting Wednesday. This move intensifies trade pressures on India.
The tariffs, a consequence of India's Russian oil purchases, potentially raise duties on Indian goods in the U.S. to 50%, one of the steepest hikes by Washington. In response, the Indian Commerce Ministry has promised financial assistance to affected exporters and encouraged diversification into alternative markets, including China and Latin America.
Analysts warn this could dent India's economy, impacting nearly 55% of its $87 billion U.S. merchandise exports. Amidst stalled trade talks and diplomatic strains, Indian Prime Minister Modi refuses to prioritize trade over national interests, while efforts to bolster relations with China are underway.
(With inputs from agencies.)
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