U.S. imposes 25% tariffs on Indian goods
In a significant move, that could impact India’s export sector, the United States has announced a 25% tariff on a range of Indian goods. Key sectors expected to be hit the hardest include electronics, pharmaceuticals, and textiles which collectively form a major portion of India’s outbound trade to U.S.
The tariff hike is a part of broader trade measure announced under the inflation reduction act (IRA) and the green energy agenda of Biden Administration. The goal is to reduce American dependance on imports and encourage domestic manufacturing
What will be affected?
According to list released, over 100 Indian exports items are now subject to higher duties. These include:
- Electronic Components
- Medical Supplies
- Garments and textiles items
- Steel and Aluminum products
- Auto parts and machinery
These 25% duty makes these goods more expensive in the US market, which could hurt their competitiveness and hurt Indian exporters.
India may feel the Pinch
Industry experts warn this could cause a drop in export earnings and affect employment in export heavy sectors. Indian pharma, for instance, supplies around 40% of generic drugs to the US market. Similarly, textiles and electronics are among the top non-oil exports from India.
The Indian government has not yet issued a formal response but may raise the issue in upcoming bilateral trade dialogues.