US-India Trade: US President Donald Trump has decided to impose a total tariff on goods coming from India. This can have a big impact on Indian trade.
US-India Trade: US President Donald Trump has decided to impose a total of 50% tariffs on goods coming from India so far. The first 25% tariff will be applicable from August 7, and 21 days after that another 25% tax will be added. This is expected to have a profound impact on Indian trade.
CTI chairman Brijesh Goyal expressed concern
The Chamber of Trade and Industry has expressed deep concern about this decision. CTI Chairman Brijesh Goyal has written a letter to Prime Minister Narendra Modi, urging that India should also counter retaliation on goods coming from America. Goyal said that this decision has been taken suddenly, causing panic among Indian exporters and businessmen. Many companies have already sent their goods to America. Now they are confused what will happen to their goods.
America decided to impose a total tariff of 50%
He further said, “The difficulty of traders is that the goods who have been sent to America, if they are now charged 50% tax then the loss is fixed.” CTI believes that this decision may affect large sectors such as engineering goods, steel, machinery and auto parts, which are already exporting huge amounts to the US.
These areas will have the most impact
Gems & jewelry
The sector sold goods worth Rs 90,000 crore to the US last year. Currently, 10% tax is levied on these goods, but now this tax can be increased to 25%. This will make Indian goods expensive and sell less than other countries.
Textile sector
Till now the cloth was taxed at 10%, but now it can be increased to 25%. This will make Indian clothes expensive in the US and can reduce sales.
Electronics sector
India sent electronic goods worth ₹ 1.25 lakh crore to the US in the year 2024. At present, only 0.41% tax is levied on them, but this tax can be directly 25% when a new rule comes. If a smartphone reaches $ 100.41 in the US, then it will cost $ 125 after 25% tax. This will increase the price of Indian electronics significantly and will affect the sale in the market there.
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Pharma industry
India sold medicines worth ₹ 92,000 crore to the US in 2024, and there was no tax on them. But now if 25% tax is levied, then Indian medicines will become quite expensive in America. In such a situation, people there can start asking medicines from countries like Vietnam to buy cheap medicines. This can cause major damage to the pharmaceutical companies in India.