Trump tariffs may impact India's 40-50% exports to US: GTRI
The US has imposed a 25% additional tariff on Indian imports, raising the total duty to 50% in response to India's continued purchase of Russian oil. This move, effective August 27, could slash India's exports to the US by 40-50%.
TIMESOFINDIA.COM The tariffs announced by the US are expected to make Indian goods far costlier in the US, with the potential to cut America-bound exports by 40-50 per cent, think tank GTRI said on Wednesday. On August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. The White House said the measure responds to India's continued purchase of Russian oil. The move places India among the "most heavily" taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, and threatens most of India's USD 86.5 billion in annual exports to America, from textiles to machinery, Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. He said in 2024, China bought USD 62.6 billion of Russian oil, more than India's USD 52.7 billion, yet faces no such penalties.
Washington avoids targeting Beijing because of China's leverage over critical materials such as gallium, germanium, rare earths, and graphite, vital for US defence and technology, he said adding the US has also overlooked its allies' trade with Russia such as the EU which imported USD 39.1 billion of Russian goods last year, including USD 25.2 billion in oil. The US itself purchased USD 3.3 billion in strategic materials from Russia. "The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US bound exports by 40-50 per cent," he said.
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