How Donald Trump's 26% Reciprocal Tariff Impacts India
The 26 reciprocal tariff assessed by US President Donald Trump is a big blow to India's exports, affecting multiple diligence. Then is what it means for the Indian frugality and also a look at the crucial sectors at threat.
How Donald Trump's 26% Reciprocal Tariff Impacts India
US President Donald Trump has delivered a major trade blow to India, assessing a steep 26% reciprocal tariff that could rattle the country’s frugality. Blazoned during his ‘Liberation Day’ address, the move comes as a reversal for New Delhi, which had been hoping for tariff concessions rather than new trade walls.
Rather, all Indian exports and imports goods in the US will now attract a minimal 26 tax, beginning April 9, leaving businesses scrabbling to assess the damage.
While Trump called Prime Minister Narendra Modi a" great friend", he claimed India has been charging reciprocal tariffs on American goods while the US has been lenient for decades.
“They (India) are charging us 52, and we GDP growth charge nearly nothing for times and times and decades," Trump said in his speech, making it clear that the new tariff structure is meant to level the playing field.
The US trade deficiency with India stands at$ 46 billion, and Trump has made it clear that these tariffs will remain until this so- called ‘trouble’ is resolved.
IMPACT ON INDIA
For India, the reciprocal tariffs could a major headache. This is because several crucial sectors will be hit hard, impacting earnings of numerous companies, ranging from small enterprises to big empires.
Reports suggest that India is considering slashing tariffs on$ 23 billion worth of US significances, including gems, textiles, jewellery, pharmaceuticals, and bus corridor, in a shot to soften the blow. But as the situation stands, no deal has been finalised yet.
Ankur Sharma, Market Analyst, VT Market, said, “ The advertisement of reciprocal tariffs by President Donald Trump on India, Japan, and other nations is a significant development in global trade, particularly for arising husbandry like India. ”
“These trade policy tariffs, aimed at neutralizing high import duties assessed by these countries on US goods, will have both short- term and long- term counteraccusations for India’s frugality, trade relations, and currency requests. ”
