Our Bureau
New Delhi
The recent declaration made by the President of the United States Donald Trump of imposing 25% tariffs on India has led the market into a frenzy. With such high tariffs, businesses are left in a muddle and are concerned that they might face some cancellations from their clients in the US due to the 25% duty on Indian goods.
The tariffs imposed on India by the US President are way higher in comparison to countries like Bangladesh, Pakistan and Vietnam. Not only that, the US has also put an additional risk of penalties alongside such high duty charges.
To counter this growing tension in the market, representatives of leading industries had some conversations with the Indian Commerce and Industry Minister, Piyush Goyal. These representatives included various sector representatives, including textiles, steel, engineering and agriculture. They have asked the government to help them with rapid implementation of the Export Promotion Mission, US market assistance, and interest equalisation for export credit.
According to the reports, from August 7th the US will start imposing 25% tariffs on Indian goods and products along with penalties. It is also being said that these high duty percentages will also impact nearly 50% of Indian exports to the US that exceeds $85 billion.
The exporters have put forward their plea to the government explaining to them the adverse effects of this tariff and have asked for support. They have also highlighted that with these tariffs India will also be at a heavy disadvantage with the competitors who will face less duty comparatively.
The representatives believe that a 20% tariff could’ve been understandable and would’ve been shared between importers, exporters as well as the consumers but the 25% tariff is too high to counter. They believe this rate will require fiscal support, such as enhanced benefits under the Rebate of States and Central Taxes and Levies scheme.
