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Tariff Shock: U.S. Duties Hit $48.2B Worth of Indian Exports
Workers at a manufacturing unit make leather footwear in Agra, India, on Monday.
The United States has officially implemented steep new tariffs on Indian goods, escalating trade tensions between the two nations. Effective August 27, 2025, the duties—raised from 25% to 50%—target a wide range of products, threatening approximately $48.2 billion in Indian exports.
Key sectors facing the brunt include textiles, gems and jewellery, shrimp, steel, and agricultural products, with industry experts warning of severe competitiveness losses in the U.S. market. Pharmaceuticals, energy, and electronics remain exempt, offering limited relief.
The tariff hike follows Washington’s criticism of New Delhi’s continued purchase of Russian oil, which U.S. officials argue indirectly funds Moscow’s war in Ukraine. India has defended its stance, citing energy security and economic necessity, while Prime Minister Narendra Modi has urged citizens to “buy Indian” to cushion the blow.
Analysts caution that the move could disrupt supply chains, cost jobs in export hubs, and push India to deepen trade ties with alternative partners, including BRICS nations. With no resolution in sight, the tariff standoff marks a sharp turn in U.S.–India relations, once seen as poised for a landmark trade deal.
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