New Delhi: The mutual charges levied by the US on India are likely to affect marine and trade risk insurance in the country. This can increase insurance rates. According to experts, the US government has postponed these fees for 90 days, which has given India time to negotiate.
In early April, US President Donald Trump announced a 26% mutual tariff on goods exported to the US from India. According to Trump, these tariffs are in response to 52 percent tariffs imposed on American imports by India. However, on April 11, Trump suspended these fees at many countries including India for 90 days to give time to negotiate. During this period, an additional 10 percent import duty will be applicable to all partner countries except China.
According to industry experts, if 26 percent tariff is imposed on Indian goods, it will put pressure on the country’s maritime and trade risk insurance.
Sources in the insurance company said that tariffs would have some indirect impact on goods exported to the US. The insurance covers the value of the goods, and if the value of the goods increases due to the tariff, the sea cargo insurance premium will also increase. If the marine tariff is applied, the amount paid for the claims is likely to increase.
According to government data, the total value of India’s trade exports rose 0.08 percent to $ 437.42 billion in 2024–25 (April-March), $ 437.07 billion in 2023-24.
Speaking about the possible impact of the tariff, an insurance specialist said that exporters may need to find an alternative market, which may be relatively unstable for their products. This will increase time and effort and also increase risk. For this reason, insurance experts hope that insurance demands will increase and claims will also increase.
Areas that exports of exports mainly on American demand may face margin pressure, lack of cash flow and potential lapse. This will increase the risk for trade loan insurance companies, as delays may increase claims. If the claims are paid in foreign currency, the loss of loss will increase by the loss of rupee.
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