The United States has officially imposed a 50 percent tariff on selected Indian imports. This bold move, spearheaded by former President Donald Trump, is set to impact trade worth billions of dollars and could strain the growing economic ties between the US and India.
Which Sectors Will Face the Tariffs?
The new tariff mainly targets India’s technology, textile, and automotive sectors. American companies that rely on affordable Indian goods may face higher costs, potentially leading to increased prices for US consumers. Indian exporters, meanwhile, worry about losing a major market, which could hurt their growth prospects.
What Goods Are Exempt?
Despite the sweeping tariff measures, some sectors remain exempt. Pharmaceuticals and agricultural products, which are crucial for both countries, will not face additional levies. This exemption aims to minimize disruptions in essential goods and maintain stability in critical supply chains.
Experts believe that while the tariffs are designed to protect American industries, they could risk the strategic partnership between the US and India. Ongoing diplomatic talks aim to balance economic interests and minimize negative impacts. Both governments may revisit the terms if the tariffs prove too damaging for either side.
Sources:
Al Jazeera: Trump’s India tariffs take effect
