Within two weeks of steep 50% of US tariffs in force in India, US President Donald Trump said on Tuesday that India and the US “continue to negotiate to deal with business obstacles between our two nations”.
Trump, who shares an update about India-USA business interviews, said Social, that in the coming weeks, he was looking forward to her “very good friend” Prime Minister Narendra Modi and added that “I am sure that both of our big countries will not be successful.”
At the beginning of July, Washington deposited another 25% tariff on Indian goods over the existing 25% tariff, which brought the total number to 50% to penalize India for the purchase of Russian oil.
Trump’s change of mind
Trump’s recent post reflects a shift in his tone towards India because he repeatedly criticized the Indian decision to buy a discounted Russian oil of the Ukrainian war.
Trump also accused India of the “war gain” by refining and exporting Russian oil, even went so far that he called the Ukrainian conflict “Modi’s war”.
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At the peak of tensions, Trump previously described India as a “dead economy”, with his business advisor Peter Navarro accused the new Delhi of the use of discounted Russian raw materials. Trump also described Indian tariffs as “among the highest in the world” and “the most strenuous and most unfavorable”.
Just a few days back, he claimed that it seemed that the new Delhi and Moscow had been “lost” to China.
Sectors affected by American tariffs
The export heavy industries are among the worst Trump tariffs and forcing them to diversify their export markets from the US. This transfer of trade includes the transition to new markets such as UAE and Qatar, said the report on Mints earlier.
Here are several sectors to face the greatest impact:
These sectors are among the most difficult intervention, with duties for knitted clothing up to 63.9% and woven clothing to 60.3%. Experts in the field warned that steep tariffs could reduce the Indian textile and clothing exports to the US by up to 40-50%, which seriously affects an export market of $ 10.3 billion because America remains the largest Indian export destination for these products.
India is third on the largest list of US suppliers in China and Vietnam.
In particular, seafood and shrimp exporters are also affected because the US is a key market for these companies. Reports suggest that Indian shrimp export currently attracts an effective customs obligation of 17.7%, which now increases to 25%in the new tariff regime.
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This has reduced the price of more shares of more sea food exporters such as Avanti Feeds and Apex Foods.
Food and agricultural exporters are also trying to look for new strategies after Trump’s unexpected tariffs on a number of goods have proven to be a wound for agricultural consignments of $ 50 billion, Mint said.
According to SBI research, gemstones and jewelry are $ 10 billion and representing 40% of the US market. This could prove to be an opportunity for countries like Switzerland, where the tariff rate is lower to 39%.
(Tagstotranslate) India Exports
