(File Photo) India PM Narendra Modi (L) with US President Donald Trump (R) | File
US President Donald Trump’s new set of tariffs is set to kick in on April 2. The 47th president of the United States is slated to announce the tariff with the specifics and core of the measures later today.
India-US Deal
According to the White House, these tariffs will be effective immediately.
Meanwhile, when it comes to India, as per an Indian Express report, India has arrived at a deal with the United States on a trade deal, before the tariffs kick in.
The Indian Express report claimed that PM Modi-led Indian government has agreed to the Terms of Reference for the Bilateral Trade Agreement.
The report also added that this came to pass due to an exigent intervention from the Prime Minister’s Office (PMO).
It is to be noted that the negotiations on the deal have been in the works for some time now. Previously, various reports hinted at different permutations and combinations of the deal.
The Paradigm Shift
While speaking in an interview Donald Trump also doubled down on reciprocal tariffs, saying that he hopes that India will slash tariffs, and if not the deadline is still open.
The specifics of the deal are not known as of now, However, it would be crucial, as it could make way for a paradigm shift in the way not just two countries trade with each other but also how each economy and the businesses function thereafter.
Earlier, it was reported that the US was looking for a near nil tariff. It was also learned that some strategic sectors like dairy, communications (internet) and agriculture are also on the table, as the Indian government is liable to protect Indian interests while striking a balance with the biggest economy in the world.
While a deal has reportedly been arrived at, collateral damage in this ‘trade war’ cannot be necessarily ruled out. Some of the sectors that are far more vulnerable to the turbulence of tariffs include alcohol and spirits; here, the highest tariff hike of a staggering 122.10 per cent will come into effect.
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Sectors Susceptible to the Tariffs
While a deal has reportedly been arrived at, collateral damage in this ‘trade war’ cannot be necessarily ruled out. Some of the sectors that are far more vulnerable to the turbulence of tariffs include alcohol and spirits; here, the highest tariff hike of a staggering 122.10 per cent will come into effect.
The Dairy industry is also expected to bear the brunt, as it will be affected by a 38.23 per cent tariff.
Some of the other segments that may be affected include meat, fish and processed seafood, which will face a 27.83 per cent tariff. This is in addition to tariff on live animals.
In addition to that, other industries, that are likely to be placated include processed food, sugar, cocoa, footwear and the jewellery business, including diamonds, gold and silver.
