Tariff war: The US has issued a notification of 25 per cent of additional tariffs on India. From tomorrow, a total of 50 percent tariffs will be implemented on India. Explaining what will be the effect of this, Yatin Mota of CNBC-Awaaz said that the US has issued a 25 percent additional tariff notification on India. According to Indian time, 25 percent of additional tariffs will be implemented from 9:31 am tomorrow. The total tariff will increase to 50 percent by adding additional tariffs.
50% tariff impact on India
50 percent tariff will affect 66 percent export of $ 86.5 billion. From tomorrow onwards, 50 percent of the duties of $ 60.2 billion dollars will be charged. The most hit of this tariff will be on the business of Textiles, James and Shrump. The 50% tariff of the US will affect the Shrimp business. A total of $ 2.4 billion $ 2.4 billion is exported from the country. America accounts for 32 per cent of this export. This applied total tariff will be 60 percent. The tariff will also have a huge impact on Textile & Epherle. A total of $ 10.8 billion is a textile & ephel export from the country. America accounts for 35 per cent of this export. The total tariff applied to this will be 63.9 percent.
Tariff will also have an effect on organic chemicals. There is a total of $ 2.7 billion organic chemicals export from the country. The total tariff applied to this will be 50 percent. Tariff will also be affected by machinery & vehicles. A total of $ 6.7 billion machinery & vehicles exports from the country. The same, EVs and tractors have a export of $ 2.6 billion.
Due to the tariff, the export from the country in FY 20226 can come down from $ 86.5 billion to $ 49.6 billion. If no step is taken, the export may see a decline of 43 percent.
Sector survived from tariff
Talking about the sectors that are left from tariffs, these include pharma, API, electronics, auto, auto parts and select copper products.
Measures to deal with tariffs
Experts say that the tax reform and Ease of Doing Business will reduce the tariff shock. Relief can be provided by providing cheaper loans to Shrump, Apel, Jewelery and Carpet business. Rodtep and ROSCTL can be helped. Government help will be important for market detail. There is a need to create India +1 Export Hub in other countries. Duty cuts on raw materials need to be deducted.