Tariff Breakdown:
U.S. President Donald Trump has imposed an additional 25% duty on Indian goods, stacking on top of the existing 25%, bringing total tariffs to 50%. The move targets India’s oil trade with Russia and is set to take effect within 21 days.
Economic Exposure:
The U.S. is India’s largest export partner, accounting for nearly $87 billion—or 20% of India’s total merchandise exports. Analysts warn this could shave 0.6 percentage points off India’s GDP, with growth forecasts dropping from 7% to 6%.
Sectoral Impact:
- Engineering goods: India’s top export category, including auto parts and industrial machinery, faces steep exposure. Nearly $19 billion worth went to the U.S. last year.
- Steel and metals: Already hit by sector-specific tariffs, now facing broader levies.
- Pharmaceuticals and electronics: Less affected due to existing exemptions, but uncertainty remains.
Economists caution that India’s appeal as a manufacturing hub could be “hugely undermined,” especially compared to regional peers like Vietnam and Thailand.
(source Hindustantimes)
—Agencies
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