As significant US tariffs go into force on a variety of Indian items on Wednesday, India is preparing for a severe hit to its international commerce. The action underscores the precarious trade relations between the two nations and jeopardizes more than half of India’s exports to its biggest market.
A 25% tax on Indian commodities was first declared by President Donald Trump, but earlier this month he signed an executive order imposing an additional 25% tariff because of India’s purchases of Russian oil. This raised the total amount of tariffs the US has placed on its ally to 50%.
According to estimates from the Global Trade Research Initiative, a research organization located in New Delhi, labor-intensive industries including textiles, jewelry, leather goods, food, and vehicles will be the most affected.
According to Ajay Srivastava, the head of the think tank and a former Indian trade official, “the new tariff regime is a strategic shock that threatens to wipe out India’s long-established presence in the US, causing unemployment in export-driven hubs and weakening its role in the industrial value chain.
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