New Delhi: In a shocking turn of events for India-US trade relations, the US, under the leadership of President Donald Trump announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment. The surprise announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal. After the imposition has been announced, several industry experts have expressed opinions on how the tariffs are going to impact the Indian market.
Which key Indian sectors will be impacted?
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Auto & Auto Components: This sector may be hit hard, with companies like Tata Motors (Jaguar Land Rover) and auto component exporters exposed to the US market.
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Electronics & Textiles: These sectors could see increased pressure due to higher tariffs, making Indian goods less competitive.
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Pharmaceuticals & IT Services: These sectors remain largely exempt from the new tariffs, but could face indirect impact if US economic activity slows.
What do experts say on US tariffs on India?
Reacting to the development, PHD Chamber of Commerce and Industry (PHDCCI) President Hemant Jain said that the United States’ recalibrated trade policy, which is also targeting other major exporters like China, Vietnam, and Bangladesh, signals a larger supply chain realignment, as per a report carried by news agency IANS.
“While Indian MSMEs may feel an initial impact, this is also an opportunity. Global buyers are now looking to de-risk from overdependence on a few geographies, and India is emerging as the most credible, democratic, and scalable alternative,” Jain was quoted as saying by the report.
Gem and Jewellery Export Promotion Council (GJEPC) Chairman Kirit Bhansali struck a cautious tone, appealing for diplomatic engagement.
“We urge the US administration to reconsider and call on both governments to engage in constructive dialogue that safeguards bilateral trade and protects the millions of jobs that depend on it on both sides,” he said.
(With inputs from agencies)
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