US too imposes hefty tariffs across product lines to safeguard domestic industry: Data
According to the World Trade Organisation (WTO) data, the US imposes high duties on items such as dairy products (200 per cent), fruits and vegetables (132 per cent), cereals and food preparations (196 per cent), oilseeds, fats and oils (164 per cent), beverages and tobacco (350 per cent), fish and fish products (35 per cent), and minerals and metals (38 per cent).
India, on the other hand, imposes 150 per cent on whiskey and wines and 100-125 per cent on automobiles.
Japan also levies around 400 per cent duty on rice, Korea 887 per cent on fruits and vegetables, and the US 350 per cent on tobacco to protect domestic industries.
While India's simple average tariff is 17 per cent, the actual duties on key American imports are much lower. The weighted average tariff on US exports to India is below 5 per cent. India has already started buying more oil and gas from the US to reduce the trade surplus and has offered to increase these purchases.
The country has proposed significant tariff reductions, potentially lowering average duties from 13 per cent to 4 per cent, in exchange for exemptions from US tariff hikes imposed during the Trump administration.
According to Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP, the imposition of a 25 per cent US tariff on Indian exports marks a disruptive moment for sectors such as textiles, gems and jewellery, auto components, and pharmaceuticals.
"For India Inc, the immediate priority is to diversify markets, accelerate value addition, and build domestic buffers to better withstand the unpredictability of global trade," he mentioned.
The recently concluded India-UK Free Trade Agreement presents a timely opportunity by unlocking stable, tariff-free access to a key market.
"This calls for a more nuanced and coordinated fiscal response, such as targeted support to impacted export sectors, faster refund mechanisms, and temporary enhancements to incentive schemes. India must use this moment not only to cushion near-term shocks but to strategically reposition itself in global value chains," said Patil.
India remains a domestic-oriented economy with consumption accounting for 60 per cent of the total GDP. On the other hand, merchandise exports accounted for only 12 per cent of GDP in FY24.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
23 minutes ago
- First Post
OPEC+ to hike oil output again in September amid Trump push to cut Russian imports
OPEC+ agreed on Sunday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia. read more A brief virtual meeting among eight OPEC+ countries on Sunday ended with an agreement to sharply increase oil production in September, even as the United States steps up pressure on India to curb imports of Russian oil, part of Washington's broader strategy to push Moscow towards peace talks with Ukraine. President Donald Trump has said he wants progress by August 8. In its post-meeting statement, OPEC+ pointed to strong global economic indicators and low inventory levels as key drivers behind its decision. Crude prices have remained robust, with Brent futures closing near $70 per barrel on Friday—up from a low of about $58 earlier this year, buoyed in part by seasonal demand. STORY CONTINUES BELOW THIS AD 'Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals,' said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks. The eight participating nations will raise their collective output by 547,000 barrels per day in September, completing the accelerated reversal of a 2.2 million-bpd supply reduction imposed in 2023. The increase also accounts for a phased-in boost from the United Arab Emirates. OPEC+ sources told Reuters that the same group would reconvene on September 7, when they may evaluate whether to reintroduce another layer of cuts amounting to roughly 1.65 million bpd, measures that are officially extended through the end of next year. The broader OPEC+ coalition, comprising 10 non-OPEC producers including Russia and Kazakhstan, has historically curbed production to stabilise prices. However, the alliance pivoted this year, aiming to reclaim lost market share, a move aligned with calls from Trump urging the group to increase supply. The phased hikes began in April with a 138,000-bpd boost, followed by steeper increments of 411,000 bpd over the next three months, 548,000 bpd in August, and now 547,000 bpd for September. 'So far the market has been able to absorb very well those additional barrels also due to stockpiliing activity in China,' said Giovanni Staunovo of UBS. 'All eyes will now shift on the Trump decision on Russia this Friday." As well as the voluntary cut of about 1.65 million bpd from the eight members, OPEC+ still has a 2-million-bpd cut across all members, which also expires at the end of 2026. STORY CONTINUES BELOW THIS AD 'OPEC+ has passed the first test,' said Jorge Leon of Rystad Energy and a former OPEC official, as it has fully reversed its largest cut without crashing prices. 'But the next task will be even harder: deciding if and when to unwind the remaining 1.66 million barrels, all while navigating geopolitical tension and preserving cohesion." With inputs from agencies
Hindustan Times
23 minutes ago
- Hindustan Times
Trump vs Senator: US President tells Chuck Schumer to 'go to hell' amid nominations row
Amid the row over nominations in the Senate, US President Donald Trump told Democratic Senator Chuck Schumer to "go to hell." In a Truth Social post, Trump slammed Schumer's demand for federal funds to be released and called on Republicans to avoid striking a deal in the Senate. Hours after President Trump told Schumer to "go to hell," the Senate headed for its August recess and failed to reach a deal over Trump's nominations.(AP) "Senator Cryin' Chuck Schumer is demanding over One Billion Dollars in order to approve a small number of our highly qualified nominees, who should right now be helping to run our Country. This demand is egregious and unprecedented, and would be embarrassing to the Republican Party if it were accepted," Trump wrote on Truth Social. The president further alleged that Schumer was under "tremendous political pressure from within his own party, the Radical Left Lunatics." "Tell Schumer, who is under tremendous political pressure from within his own party, the Radical Left Lunatics, to GO TO HELL! Do not accept the offer, go home and explain to your constituents what bad people the Democrats are, and what a great job the Republicans are doing," Trump added in his post. Schumer responded to Trump's social media post and told reporters that the President "did not get his way." "He bullied us, he cajoled us, he called us names, and he went home with nothing," Schumer further said. Senate heads for recess after nomination bid fails Hours after President Trump told Schumer to "go to hell," the Senate headed for its August recess and failed to reach a deal over Trump's nominations. The house is now set to resume in September and Republicans are expected to change Senate rules to speed up the pace of confirmations for Trump's nominations. Since the start of his term, Senate Democrats have blocked many nominees this year as part of an attempt to block out unanimous consent votes. Amid this move, Trump has added pressure on GOP senators to move quickly. The latest tussle between Democrats and Republicans comes amid Trump's nominations to the judiciary. Ahead of Saturday's session, Trump had placed great pressure on Republicans to reach a deal and cancel the August recess if needed. However, after his public attack on Schumer, Trump told Republicans to pack it up and go back to their respective states.
Deccan Herald
23 minutes ago
- Deccan Herald
Rahul Gandhi anti-national, only supports Muslims of Bangladesh, Pakistan, alleges Assam CM Himanta
Guwahati: Assam Chief Minister Himanta Biswa Sarma on Sunday alleged that Congress leader Rahul Gandhi is anti-national and only supports the Muslims of Bangladesh and to reporters on the sidelines of an election campaign meeting in Bodoland Territorial Region, Sarma also claimed that the Congress does not respect icons of Assam, like the Kamakhya temple and Mahapurush Srimanta Sankardeva.."Rahul Gandhi is an anti-India person. He is only with Bangladeshi and Pakistani Muslims. He is not with Indian Hindus, not even with Indian Muslims. Rahul Gandhi is an anti-national personality," Sarma however, did not elaborate on the reasons for branding Gandhi, the Leader of the Opposition in the Lok Sabha, as "anti-national"..Asked about Congress leader Priyanka Gandhi's planned visit to Assam, Sarma said he has no objection to it.."I have no objection to Priyanka Gandhi coming to Assam. However, Assam's Self Help Groups' women members are 100 times more advanced than Priyanka Gandhi. Assamese women, especially those in SHGs, will defeat Priyanka Gandhi in every probe conspiracy by Congress to frame Bhagwat, Chidamabaram should be questioned: Himanta."She won't be able to join a competition with them. Our women prepare laaru, pitha (traditional Assamese sweets), do farming in paddy fields, and send children to schools and colleges. How can Priyanka Gandhi compete with our women?" he in the day, Assam Congress president Gaurav Gogoi said that party MP Priyanka Gandhi has expressed willingness to visit Assam, especially Dhubri, where she had campaigned during the last Lok Sabha to it, Sarma claimed, "They consider Dhubri as Assam. There is no issue in visiting Dhubri. But first one should talk about visiting Kamakhya, Batadrava, Charaideo Moidam and Rang Ghar, and then to Dhubri also."He also alleged, "They (Congress leaders) don't have faith in Maa Kamakhya, Mahapurush Sankardeva, and do not recognise Charaideo and Rang Ghar. They recognise only a section of religious minorities living in Dhubri. They don't understand the love of any other people." Stressing that he has absolutely no problem with Gandhi visiting Dhubri, Sarma claimed that Assamese people of other areas "do not have any interest" in seeing the Congress leader.."There is no problem in going to Dhubri, but she should visit other areas. However, I feel it is not the time to visit other places. Who will come to see Priyanka Gandhi? Assamese people have no interest in seeing Priyanka Gandhi," he claimed.
