The new measures threaten more than half of India’s exports to its largest market, further straining the already sensitive trade relationship between the two countries.
Previously, President Trump had announced a 25% tariff on Indian goods. Earlier this month, in response to India’s purchases of Russian oil, he signed an executive order imposing an additional 25% tariff. This brings the total tariff on Indian goods to 50%.
The Indian government stated that the new tariffs put USD 48.2 billion (EUR 41.5 billion) of exports at risk. Officials warned that these measures could make shipments to the U.S. commercially unviable, leading to job losses and slower economic growth.
While India-U.S. trade relations have grown in recent years, disputes over market access and political tensions have created a fragile trading environment. Experts note that this move could negatively impact commercial balances in India, one of the world’s fastest-growing economies.
Some critical sectors are exempt from the new tariffs. Exports of electronics and pharmaceuticals are excluded, and Apple’s new factory investments in India will not be affected by these tariffs for now.
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