Mumbai: Trump’s tariff, who has been at the center of a long time debate, was finally announced on Wednesday and Trump has imposed heavy tariffs on goods imported from most countries of the world including India. However, Trump has shown a less favorable attitude towards India with 27 percent tariff compared to other countries of the world. Mixed sentiments are arising in Indian industries from the new tariff level.
Announcing tariffs on Indian goods, the US President has kept pharmaceutical products and energy out of tariffs, but the country’s gems and jewelery and electronics industries are likely to have the most impact. The textile sector of the country is benefiting from high tariffs on other competitive countries.
India’s exports to the US mainly include pharma, telecom equipment, gems, petro products, jewelery and textiles, while India’s imports from the US include crude oil, coal, electric machinery and aerospace equipment.
India’s gem and jewelery exports to the US are $ 10 billion, while electronics exports are $ 14 billion. High tariffs are likely to have the most impact on these areas, as the US first imposed 2.12 percent tariff on jewelery and gems and 0.41 percent on electronic goods, which has now increased considerably.
Auto parts and aluminum are excluded from the scope of the new tariff, but the order of Trump has clarified that they will be imposed 25 percent of the already imposed tariff. Although the total export of pharma and energy to the US from India is about 9 billion dollars, these areas are relieved that no tariff has been declared on them at present.
Indian items that are excluded from tariffs include copper, semiconductor, gold, silver and minerals besides pharma. Meanwhile, India’s textile sector is benefiting, as high tariffs are being placed on the competitors of India, such as Bangladesh, Vietnam and China in the textile sector.
The textile sector contributes two percent to India’s GDP, while the textile sector of Bangladesh and Vietnam contributes 11 percent and 15 percent to its GDP respectively.
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