US President Donald Trump on Wednesday slapped a further 25 per cent tariff, elevating the full duties to 50 per cent on items coming from India, as a penalty for New Delhi's continued buy of Russian oil. The 50 per cent obligation will come into impact from August 27.
That is on prime of the same old US import duties, referred to as Most Favoured Nation (MFN) tariffs.
This choice makes India probably the most closely taxed US buying and selling companions, worse off than China (30 per cent) or Vietnam (20 per cent), and on par with Brazil.
GTRI, in its evaluation, has categorised India's export segments in three categories- very excessive influence sectors (exports could also be down by 50-70 per cent), high-impact sectors (exports could also be down by 30-50 per cent), and low or no influence areas.
Within the first class, there are 9 product classes – shrimp, natural chemical substances, carpets, knitted and woven attire, made-ups, diamonds, gold and jewelry, equipment and mechanical home equipment, and furnishings and bedding.The high-impact phase items are metal, aluminium, copper, and auto elements.The final class gadgets are prescription drugs, smartphones, and petroleum merchandise, the World Commerce Analysis Initiative (GTRI) stated.
India exported USD 2 billion price of shrimps to the US in FY2025, accounting for 9.52 per cent of complete US shrimp imports.
These now face a 50 per cent tariff, an antidumping obligation and a countervailing obligation of about 10 per cent.
“India faces stiff competitors from Canada (16.16 per cent share, zero tariff underneath USMCA) and Chile (15.02 per cent share, 10 per cent tariff). With such excessive duties, Indian shrimps danger shedding important floor to lower-taxed opponents like Chile,” GTRI founder Ajay Srivastava stated.
India exported USD 2.7 billion of natural chemical substances to the US, holding a 5.11 per cent market share, and now faces a 54 per cent complete tariff (4 per cent MFN + 50 per cent Trump tariff).
In distinction, Eire (36.11 per cent share) pays simply 15 per cent, and Switzerland (6.46 per cent ) pays 39 per cent.
“Indian chemical exporters will battle to remain aggressive towards these low-tariff suppliers,” he stated, including that India is the biggest exporter of carpets to the US, with a 35.48 per cent market share and USD 1.2 billion in export worth.
He additionally stated that with USD 10 billion in exports and a 13.63 per cent market share, that is India's prime sector to the US, now dealing with 52.1 per cent obligation (2.1 per cent MFN + 50 per cent).
Switzerland (17.02 per cent) and Canada (10.44 per cent) pay decrease duties — 39 per cent and 35 per cent, respectively.
Additional, the nation exported USD 6.7 billion in equipment, with a 6.79 per cent share of US imports.
“Now dealing with a 51.3 per cent obligation (1.3 per cent MFN + 50 per cent), India trails behind Mexico (19.92 per cent, zero tariffs), China (16.03 per cent, 30 per cent obligation), and Taiwan (10 per cent, 15 per cent levy),” Srivastava stated.
“High Indian companies embody GE India, Bharat Forge, and JCB India. Tariffs might derail India's climb in superior manufacturing exports,” he famous.
