US President donald trump had announced a 50 percent tariff on india, which is going to be implemented from wednesday (August 27). trump has imposed an additional 25 percent tariff on India. He has imposed additional tariff on india for buying oil from Russia, which india had repeatedly denied. If analysts are to be believed, then this is not going to have any significant impact on India. According to IANS, global reports say that the total 50 percent tariff is unlikely to have any significant impact on india due to strong domestic demand. Labor-intensive textiles and gems and jewelery sectors are expected to have a moderate impact, but pharmaceuticals, smartphones and steel are currently safe due to exemptions, existing tariffs and strong domestic demand.
Important things related to the new tariff system
According to the draft notice of the US Department of Homeland Security, the new tariff system will come into effect from 12.01 pm on august 27, 2025. Now more tax will be levied on goods imported from India.
Indian exporters are facing the fear of a drop in orders after the US decision to impose a 50% tariff. However, an official told Reuters that such exporters can get financial assistance. Now indian exporters are looking for possibilities in markets like china, Latin America and the Middle East.
Prime minister Modi, referring to the US tariff in ahmedabad on monday (August 25), said that india is ready to face the pressure. He said that the interest of farmers, livestock farmers and small industries is his priority.
PM Modi emphasized on Swadeshi in gujarat on tuesday (August 26) and said, "My definition of Swadeshi is simple. I am not concerned about whose money it is, whether it is dollars or pounds, or where it comes from. The important thing is that the hard work should be Indian."
The US tariffs on india are being implemented after five rounds of trade talks that lasted several months, in which both sides were not successful in making a trade deal.
According to S&P Global Ratings, the economic impact of a tariff hike will be mitigated by the large size of India's domestic market.
Exports of chemicals, automobiles and food and beverages will face the toughest adjustments, the report said.
The US is India's biggest textile export destination. india is the third-largest exporter to the US after china and Vietnam, with a 9 per cent share.
Over the past five years, india has increased its market share in the US at the expense of china, rising from 6 per cent to 9 per cent, while China's share has declined from 38 per cent to 25 per cent.
India has a large domestic market, which reduces dependence on external demand. This could prove helpful in protecting the country from US tariffs.
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