Steep US tariffs on a range of Indian products took effect on Wednesday, threatening a severe blow to India’s overseas trade in its largest export market.
Advertisement
US President Donald Trump had initially announced a 25 per cent tariff on Indian goods. But earlier this month, he signed an executive order imposing an additional 25 per cent tariff due to India’s purchases of Russian oil, bringing the combined tariffs imposed by the US on its ally to 50 per cent.
The Indian government estimates the tariffs will impact US$48.2 billion worth of exports. Officials have warned the new duties could make shipments to the US commercially unviable, triggering job losses and slower economic growth.
India–US trade relations have expanded in recent years but remain vulnerable to disputes over market access and domestic political pressures. India is one of the fastest-growing major global economies, and it may face a slowdown as a result.
Sectors to be impacted by US tariffs
Estimates by New Delhi-based think tank Global Trade Research Initiative suggest labour-intensive sectors such as textiles, gems and jewellery, leather goods, food and automobiles will be hit hardest.
Advertisement