According to recent news, India and the US are attempting to negotiate a bilateral trade agreement (BTA). The talks are reportedly ongoing for an interim trade deal, with no compromise on the red lines regarding duty concessions on agricultural items, dairy products, and genetically modified products. They are indeed working together to complete the first part of the agreement by October or November of this current year.
The 25 ℅ duty, declared on July 31, becomes effective from August 7. An additional 25 per cent will be practised by the US from August 27. These will exceed the existing standard import duty in the US.
Trump slapped an additional 25 % tariff, raising the total duties to 50/% on the Indian goods, as a straight penalty for New Delhi's continued purchase of Russian oil.
The 50 ℅ reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30-35℅ competitive disadvantage compared to peers from those countries with a lesser reciprocal tariff.
Ironically, the only country where the US has raised taxes or imposed penalties on Russian goods is India. China and Turkey, these two vital clients, have not yet been impacted by such severe measures. In order to sustain their export growth, exporters will be forced to search for new customers.
Domestic export sectors such as leather, chemicals, footwear, gems and jewellery, textiles and shrimp will certainly be harshly impacted by the imposition of the declared 50 % tariff by the US, maintained industry experts.
The Global Trade Research Initiative stated that the tariffs are expected to make Indian goods far more expensive in the US, with potential to cut US-bound exports by 40-50 per cent." It is a think group that focuses on climate change, commerce, climate change and in every usual way technology.
Not long ago, almost all types of tariffs were generally tolerable or within the limits, or at the very least, largely domestic, handled by traditionally astute economists and their practical considerations, meeting just the requirements.
In the meantime, Amitabh Kant, the former G20 Sherpa of India, views the high tariffs as a "once in a generation opportunity" despite worries about how they would affect trade and domestic companies. According to him, Trump has made it possible for India to "take the next big leap" in transformation. He has called for making the most of the crisis.
Further, A South Asia analyst has explained that Trump singled out India for its trade with Russia by imposing hefty penalties because New Delhi refused to let him take credit for the ceasefire. Michael Kugelman, director of the South Asia Institute at the US-based Wilson Center, spoke to news agency ANI after Trump announced an additional 25 per cent tariffs on Indian exports, taking the total tariff burden to 50 per cent.
Moreover, Because New Delhi wouldn't let him to claim credit for the truce, Trump targeted India specifically for its commerce with Russia by enforcing quite heavy fines, according to a South Asia specialist. Following the announcement by Trump of an extra 25% tax on Indian exports, which would raise the overall tariff burden to 50%, Michael Kugelman, director of the South Asia Institute at the US-based Wilson Centre, talked to news agency ANI.
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