The US imposed a 50% tariff on most imports from India by adding an extra 25% duty to an earlier 25%, citing India's continued purchases of discounted Russian oil and defence hardware. The new duties exceed tariffs on China, other south-east Asian countries and South Korea, and have been likened to a trade embargo. Two-thirds of Indian shipments to the US face the 50% rate, threatening jobs and growth in labour-intensive sectors. Pharmaceuticals, electronics and petroleum exports are exempt, while textiles, jewellery, seafood and leather face steep risks. Exports from affected sectors could plunge sharply, forcing exporters to absorb costs or lose market share to competitors such as Vietnam, Bangladesh and Mexico.
Washington added an extra 25% duty on top of the 25% imposed earlier this month, citing India's refusal to stop buying Russian crude and defence hardware. The duties, which are 16 percentage points higher than China, 31 points higher than most south-east Asian countries and 35 points above South Korea, have pushed US tariffs on Indian goods to levels that the investment house Nomura likened to a trade embargo.
The US is India's largest export market, worth $86.5bn (64.1bn) a year. Around two-thirds of shipments are covered by the 50% tariff, threatening jobs and growth across sectors reliant on US demand. No Indian product can stand any competitive edge under such heavy import taxes, said Garima Kapoor of Elara Securities. Economists say the tariffs could erase up to one percentage point from India's GDP growth this fiscal year. Unemployment is a worry.
Collection
[
|
...
]