The high tariffs imposed by US President Donald Trump on India will be implemented in phases from today, severely impacting leather, jewelry, shrimp, and textile sectors. Indian exports are at risk of falling by half, and business leaders are worried about the impact on millions of jobs.
BY – RAJA PENTAPATI AP BUREAU CHIEF
. . National News
Amravati August 7 (Bharat News)AP
The US has taken a sensational decision regarding trade relations with India. In retaliation for the continuous purchase of oil from Russia,
the Donald Trump government has announced that it is imposing a huge tariff of 50 percent on key products imported from India. With this decision, India’s key export sectors like leather, diamonds-jewelry, textiles, and chemicals have fallen into a deep crisis.
These new tariffs announced by the US will come into effect in phases. In addition to the existing tariff, the tariff will be increased by 25 percent from today and then by another 25 percent from August 27.
Industry sources are expressing serious concerns that with this huge increase, Indian exports to the US are at risk of falling by 40 to 50 percent. Due to this, the prices of Indian goods in the US market are likely to increase drastically and their demand will decrease.
The impact of these tariffs will be felt most on the sectors of textiles, diamonds and jewellery, leather, footwear, shrimp, chemicals and machinery.
Trade associations such as the Gem and Jewellery Export Promotion Council have warned that this will be particularly severe on the diamonds and jewellery industry, which plays a key role in India’s exports. They have expressed concern that about 50,000 workers lost their jobs when the US imposed a 10 percent tariff in the past, and now the situation will become worse with a 50 percent increase.
It is noteworthy that these punitive tariffs have been imposed only on India, leaving out other countries like China and Turkey, which buy oil from Russia.
The US has justified this decision by citing national security and foreign policy reasons. Efforts by Indian and US trade associations to seek exemption from these tariffs have so far been unsuccessful. This development has further increased trade tensions between New Delhi and Washington.
Bharat News Andhra Pradesh
