China 34, Bangladesh 37, Pakistan 29…, India staring at a big danger due to…, what will PM Modi do?
New Delhi: Owing to the imposition of higher tariffs by the United States on other countries, there is a possibility of increased dumping in India. In a warning issued by the CARE rating, it has said that the higher tariffs could harm certain sectors. The direct impact of US tariffs will vary across different sectors. However, there will be no impact on pharmaceuticals, as they are currently exempt from tariffs. Electronics, textiles, agricultural products, chemicals, and automobile parts are also not expected to be significantly affected. Gems and jewelry could face a negative impact.
In the financial year 2023–24, India exported goods worth USD 77.5 billion to the US, while it imported goods worth USD 42.2 billion from the US.
It is important to note that the large amount of goods exported from India to the United States includes electronics, textiles, pharmaceuticals, gems and jewelry, agricultural products, chemicals, and automobile parts.
On average, the United States imposes a tariff of 3.50 percent on goods imported from India. This has now been increased to 26 percent. President Donald Trump has emphasized tariff reciprocity. He stated that the United States will impose tariffs equivalent to those imposed by other countries to ensure fair trade.
China, Bangladesh, and Pakistan are all in TROUBLE
The tariffs imposed by the United States on other countries are higher compared to those on India. The US has imposed tariffs of 46 percent on Vietnam, 37 percent on Bangladesh, 34 percent on China, 32 percent on Taiwan, 32 percent on Indonesia, and 29 percent on Pakistan. According to the rating agency, this could be beneficial for India, as it may provide an advantage to India’s export sector.
How much trade happens between India and the United States?
India exported goods worth USD 77.5 billion to the United States in the year 2023-2024. On the other hand, it imported goods worth USD 42.2 billion from the United States. This clearly shows that India sells more to the United States and buys less. President Donald Trump has emphasized the need for tariff parity. He has said that the US will impose tariffs equal to those imposed by other countries to ensure fairness in trade.
On April 2, Trump issued an executive order. According to it, an additional tariff of 10 percent to 50 percent will be imposed on imports from all trade partners. The baseline tariff of 10% will take effect from April 5, 2025. The remaining tariffs will be implemented from April 9, 2025. The additional tariff on India is 26 percent.
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