The tariffs lately introduced by the US may have a extreme affect on India’s exports to the US. The tariffs are anticipated to make Indian items far dearer within the US, with the potential to chop America-bound exports by 40–50 per cent, suppose tank International Commerce Analysis Initiative (GTRI) mentioned on Wednesday.
The White Home mentioned earlier that the measures are imposed in response to India’s continued buy of Russian oil, as reported by PTI.
Penalties of latest tariff
On August 6, Washington introduced a further 25 per cent tariff on all Indian imports, on high of an present 25 per cent obligation, taking the full to 50 per cent from August 27. These new ‘reciprocal’ tariffs include their very own set of penalties:
- Broad affect: The tariff threatens most of India’s $86.5 billion in annual exports to America, from textiles to equipment.
Including to the results, Global Commerce Analysis Initiative (GTRI) Founder Ajay Srivastava mentioned that China purchased $62.6 billion of Russian oil in 2024, which is greater than India’s $52.7 billion, but the nation doesn’t face any such penalties.
Why is the US not concentrating on China?
Washington avoids concentrating on Beijing due to China’s dominance over essential minerals comparable to gallium, germanium, uncommon earths, and graphite, that are essential for US defence and expertise, he mentioned.
Srivastava additionally added that the US has additionally ignored its allies’ commerce with Russia such because the European Union (EU) which imported $39.1 billion of Russian items final yr, together with $25.2 billion in oil.
The US itself bought USD 3.3 billion in strategic materials from Russia, the information company mentioned. “The tariffs are anticipated to make Indian items far costlier within the US, with potential to chop US sure exports by 40–50 per cent,” he mentioned.
