Trump tariff
US President Donald Trump put a 25 percent tariff on India before the sixth round of talks between Indo-US and the deadline of Tariff in the end of August. Along with this, Trump has also talked about imposing a penalty over India due to doing business with Russia. If the tariff of Trump applies from August 1, then it will have a direct impact on many business sectors of India, about which we are telling you in detail.
US President Donald Trump put a 25 percent tariff on India before the sixth round of tariffs to be held in the late August between Indo-US and the deadline of tariff. Along with this, Trump has also talked about imposing a penalty over India due to doing business with Russia. If the tariff of Trump applies from August 1, then it will have a direct impact on many business sectors of India, about which we are telling you in detail.
Effect on textile and garments
India is a major exporter of textile and garments. America buys the most clothes and footwear from India. With 25 percent tariff and penalty, these goods will become expensive in the US market. This can affect orders and shipments of Indian companies and reduce exports.
Jewelery and Diamond
India is the highest diamond export country in the world. America buys large amounts of jewelery and diamonds from India. After the new tariff, their prices will increase. In such a situation, American buyers can get diamonds and jewelery from other countries instead of India.
Automobile sector also in trouble
India also exports automobile and auto parts to America. Already, steel and aluminum have a tariff of 25% and now the tax of 25% on the auto sector will be applicable from August 1, then their demand may decline.
Mobile and electronics also hit
India sells US $ 14 billion mobiles, telecom and electronic products every year. The tariffs will increase their prices and American buyers can turn to other countries. This can reduce India’s export of billions of dollars. Apart from this, the effect of tariff will also be seen on the chemical sector.
25 percent tariff will also be affected on these sectors
There are some sectors that were exempted from the US tariff, including medicines (pharma), semiconductor, energy products (oil, gas, coal, LNG) and copper, but the tariffs that come from August 1 can also include all these things, due to which it is natural to affect its export.
How much can India harm?
The new tariff which will apply to India from August 1 will directly affect India. According to experts, the export of annual exports to India may fall from $ 2 to 7 billion. In 2023-24, India exported goods worth about $ 77.52 billion to the US, which is about 18% of the total exports of India. In such a situation, this shock is considered to be very big for India.