Trump’s tariff bomb, GDP will decrease, jobs, economy will be affected

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Tariff’s impact on India

The US has issued a notification for 25 percent additional tariffs on India. From August 27, India will have a total tariff of 50%. Trump’s tariff bomb is not only staggering economy from all over the world. Rather, its direct impact can be seen on India’s GDP, jobs here. Because, due to increase in tariffs, India’s export of 87 billion dollars is expected to be affected. Let us understand in detail how much the sectors can suffer from tariffs.

Impact on India’s economy

India’s economy may get a deep setback with the implementation of 50 percent tariff in the US. India exports about $ 80 billion to the US every year, which is 18 percent of the total export and about 2.5 percent of GDP. This tariff can reduce exports by up to 50 percent, due to which the country’s GDP is also declining by 0.4 percent.

Impact on Economy

Jobs crisis

India’s growth rate can go below 6 percent in the financial year 2026. There may be a decrease in the price of the rupee and investment in the private sector. The domestic manufacturing sector will also have an impact, which can cause billions of dollars loss. Areas such as pharmaceuticals and electronics can be free from tariffs, but will have a profound impact on service sectors, which can put millions of jobs in danger and increase unemployment.

Trump Tariff Impact

Major sector affected by tariffs

  1. Textiles and apparel- The export of $ 10 to 15 billion of this sector may be affected. Orders can move to countries like Vietnam and Indonesia, which will weaken India’s competition and can be in danger millions of jobs.
  2. James and Jewelery- Exports of $ 9 to 10 billion are expected to be affected. Stopping shipment may cause a crisis on the livelihood of millions of artisans. However, India is planning to set up new units in Dubai and Mexico, but this process will take time.
  3. Auto Parts- About $ 7 billion exports in this sector can be affected. Increasing prices in prices can make thousands of jobs at stake, especially the industry of cars, trucks and tractor parts.These sector may loss

These sectors will also be affected

  1. C-food- Exports of $ 2 to 3 billion (about Rs 24,000 crore) may be affected. The cancellation of the order will harm millions of laborers and farmers, while countries like Ecuador and Vietnam can benefit.
  2. Carpet making- 60 percent export of this sector will be affected, which will affect about 2.5 million people. Along with this, the reduction in export of leather, chemicals and mechanical machinery sectors can put the employment of millions of people in danger.

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