From today, India will face a 50% tariff imposed by the United States, which will significantly impact India's economic growth.
The Gulf News reported on its front page that India will face the harshest tariffs in US history from today onwards.
Mitleshwar Takur of the Indian Council for Apparel Exports said that Indian garments are being pushed out of the US market due to price factors, facing a tariff gap of more than 30% compared to competitors.
India's exports to the United States amounted to $87 billion in 2024.
With the United States starting to impose tariffs as high as 50% on Indian goods today, Indian exporters are facing a major trade shock unless President Donald Trump reverses the decision at the last minute.
Analysts warned that these tariffs will severely hit labor-intensive industries such as textiles, gems and jewelry, shrimp, leather, and apparel, although the pharmaceutical and electronics sectors may be exempted.
Economists warned that the economic growth this fiscal year could fall below 6%, the weakest since the pandemic. Capital Economics expects the economic growth to be impacted by 0.8 percentage points over the next two years.
A notice from the US Department of Homeland Security confirmed the new tariffs, which came into effect at 9:30 am Indian Standard Time today. This move doubles the existing 25% tariff, making India face one of the harshest trade regimes Washington has implemented in recent years.
Nomura Securities analysts warned that the 50% tariff is "equivalent to a trade embargo," which will severely damage the profitability of small companies. The Global Trade Research Initiative estimates that two-thirds of India's exports to the United States - worth $60 billion - will face high tariffs, with shipments in affected industries possibly plummeting by 70%.
This could lead to unemployment and weaken India's position in the supply chain. The core of the dispute is oil; Washington has linked the tariffs to India's sharp increase in Russian oil imports, claiming it helps Moscow fund its war efforts. India rejects this view.
New Delhi is preparing a $2.8 billion support program, subsidies, and export diversification to 50 markets. However, industry groups warn that US demand is not easy to replace. Export, employment, and growth are at risk. The US is India's largest export market, with exports reaching $87 billion in 2024.
Original: www.toutiao.com/article/1841566610384908/
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