US tariff impact on India
The US has decided to impose an additional 25% tariff on goods coming from India, which has come into force from 27 August i.e. today. Earlier, from August 7, America had implemented 25% tariffs on India. Now a huge tax of 50% has been levied in total.
Meanwhile, CTI chairman Brijesh Goyal says that this decision is going to have a profound impact on India’s trade and the jobs of millions of people can be endangered and many sectors can also suffer big losses.
These big sectors will be damaged
Brijesh Goyal, chairman of the country’s leading merchant organization Chamber of Trade and Industry (CTI), says that this tariff is a major setback for India’s textiles, leather, gems and jewelery, auto parts, chemical, pharma, seafood and electronics sector. The jobs of about 1 million people working in these sectors have become a threat.
Due to increased tariffs, Indian goods will become about 35% expensive in the US market. In such a situation, American buyers would like to take goods from countries like China, Vietnam or Bangladesh instead of India.
Crisis on export of $ 48 billion
According to CTI estimates, this decision of America may affect India’s export of about $ 48 billion. India exports products such as pharmaceutical (53%), textile (53%), gems and jewelery (37%), auto parts (28%), chemical (13%) and seafood (22%) to the US and now they will now have a direct impact.
Traders confused about old orders
This is a big question among the traders whether a new tariff will be applied to companies which have already taken orders or whose goods are on the way? American agencies have not given any clear information about this. This has increased the problems of small and medium traders.
Strong shock to engineering and textile sector
In 2024, India sent engineering goods worth about Rs 1.7 lakh crore to the US like steel products, machinery, automobile parts etc. Earlier there was a 10% tariff on these, which has now increased to 50%. Now if any goods were sold there for $ 100, then it would be sold for $ 150. This will reduce the demand for Indian goods in the US market and reduce exports by 20-25%.
Electronics and medicines also become expensive
India sent electronics goods worth Rs 1.25 lakh crore and medicines worth Rs 92 thousand crore to the US last year. Electronics had only 0.41% on electronics and 0% tariff on medicines. Now both these products will reach America by becoming 50% expensive.
India will also have to show strictness
Brijesh Goyal has written a letter to Prime Minister Narendra Modi saying that now India should also respond to this attitude of America. India should reduce dependence on America and find new markets in countries like Germany, Britain, Singapore, Malaysia.
He also suggested that India put up counter -tariffs on goods like expensive gems, nuclear reactor parts, airplane equipment, electrical goods, plastic, nuts, steel.