Trump Slaps 26% Tariffs On Imports From India
U.S. imposed a 26% tariff on imports from India following President Donald Trump’s global trade policy that has unnerved the global markets. A basline 10% tariff will start on Saturday before the remaining reciprocal tariff takes effect from April 9.
Trump announced the reciprocal tax and said that they (India) are charging 52% from us and ‘we are charing nothing for years and years and decades’.
The duty of 26% is based on tariff and non-tariff barriers including currency manipulation, as per the administration.
US President slapped higher duties on other countries, including 34% on China on top of 20% tax announced earlier and 46% on Vietnam.
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However, a relatively lower tariffs on India has calmed the equity markets.
Notably, electronic product market of worth $14bn and gems and jewellery market of $9bn are among the top sectors to be hit by the US tariffs.
Trump administration exempted Indian pharmaceutical exports from the tariff bringing some relief to the sector. US accounts nearly 1/3rd of the India’s pharmaceuttical exports – with a sales of almost $9bn last fiscal year.
Shares of Indian drugmakers rose by almost 5% in early trade on Thursday in contrast to the drop in the broader stock market.
India’s export competitiveness is expected to be less impacted than the key rivals due to the lower tariff rates.
According to the US administration, India had imposed ‘uniquely burdensome’ non tariff barriers, and removal of them will enhance US exports by at least $5.3bn annually.
The tariffs would remain in effect till the threat posed by the trade deficit and underlaying non-reciprocal treatment is resolved or mitigated, the administration said.
The US trade deficit with India has reached to a whopping $46bn.
