Aarav Sharma India Faces 50% US Tariff as Trade Tensions Escalate
The Indian government has extended a reprieve to its textile industry by extending import duty exemption on cotton until December 31, 2025.
India’s stock markets plummeted as the country faced the consequences of the 50% tariff imposed by the US on its goods exports, with the Sensex and Nifty indices falling sharply. The Indian rupee also depreciated against the dollar.
The 50% tariff, one of the highest levied on any country, was imposed due to American accusations that India’s crude oil purchases from Russia are financing Moscow’s war in Ukraine. Key sectors hit by US tariffs include apparel, textiles, gems, and shrimps, which may face increased costs and threaten low-skilled jobs in India.
The Trump administration’s move has strained India-US trade relations, with the Indian government seeking to address the concerns of its exporters while maintaining diplomatic ties with Washington. The 50% tariff on Indian goods comes into effect as tensions between the two countries continue to escalate.
India is now facing a cumulative 50% tariff on its goods being exported to the US, which may impact low-margin exports and threaten employment in sectors like textiles and apparel. The government’s extension of import duty exemption on cotton until December 31, 2025, aims to support exporters further.
The move has sparked concerns among Indian exporters, with many calling for a retaliatory measure against the US. As India navigates the challenging economic landscape, the impact of the US tariffs is expected to be felt across various sectors and industries.
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This report has been curated and published by the Indian Press Union.
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