Are India's exports to US now at risk because of 50% tariff? Which sectors will be most hit?
Over half of India's exports to the United States are now at risk because the US has added additional 25 percent tax on Indian goods. President Donald Trump has accused India of working with Russia. Because of this new tax, the average tax on Indian goods has gone up to 50 percent, compared to 25 percent before.
Before India, America has imposed a tariff of 50 percent on Brazil. This is America's maximum tariff..
Even though the US has exempted some key sectors like steel, aluminum, semiconductors, medicines, and cars, the tax hike will still hit nearly 60 percent of India's $91 billion exports to the US. About $63.5 billion in trade is at risk.
One of the hardest-hit areas is likely to be textiles, where India competes with countries like Bangladesh, Pakistan, Vietnam, and the Philippines, which have lower tax rates of 19-20 percent. The higher tax could hurt India's ability to compete in clothing, home goods, and other products that need a lot of labor.
India is expected to keep about 10 percent of its trade because it has a strong market share in things like synthetic diamonds and cumin, which make up over 60 percent of US imports. However, the rest of its exports will face more competition.
This situation not only threatens India's exports but could also affect trade relations between India and the US.
Many additional sanctions can also be seen: Trump
Meanwhile,after imposing tariff on India, Trump said, "There is still a lot left"
In the White House press conference, Trump was asked that many countries including China are buying oil from Russia, then why is only India being targeted?
In response to this, Trump said, "It has been only 8 hours. Let's see what happens next. You will get to see a lot more. Many additional sanctions can also be seen."
Trump was asked, "Do you have any plan to impose additional tariff on China as well?"
Donald Trump replied, "This can happen. It depends on what steps we take next."
Prakash Kumar Pandey