Donald Trump fulfilled his promise: Commercial Tariffs on India imports to the United States officially rise up to 50% on Wednesday (27). The measure, in addition to commercial effects, also has a strong blow also in the ties between the two countries that became strategic partners after the turn of this century-Indian Prime Minister Narendra Modi, is a nationalist conservative, as well as Trump.
The rate is the sum of the 25% previous rate imposed by Trump on many imports from India, with a new punitive tariff of 25% imposed due to russian oil purchases. Total tariffs reach 50% for products such as clothing, precious stones and jewelry, shoes, sports goods, furniture and chemicals – among the highest imposed by the US at the same level as Brazil.
The new rates threaten thousands of small exporters and jobs, including the home of the Prime Minister of India, Gujarat, and are expected to impair the expansion of the world’s main fastest growth economy.
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There was no reaction from the domestic market to measure on Wednesday, as the scholarships were closed to a Hindu festival, but the reference rates of the shares recorded their worst session in three months on Tuesday, after a notification of Washington confirmed the additional fare.
Indian role also continued its loss series for the fifth consecutive session on Tuesday, ending at its lowest level in three weeks.
Although tariffs are harmful, perhaps not everything is sadness and disgrace to the fifth largest economy in the world, if New Delhi can further reform its economy and become less protectionist, while seeking to resolve the crisis with Washington, analysts said.
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An employee of the Ministry of Commerce told Reuters on an anonymity condition that exporters affected by tariffs would receive financial assistance and would be encouraged to diversify to markets such as China, Latin America and the Middle East.
A notice from the US Border Customs and Protection Department for shippers offers a three-week exemption for Indian goods that were carried on a ship and in traffic to the US before the midnight deadline.
Also exempt are steel, aluminum and derivative products, passenger vehicles, copper and other goods subject to separate tariffs of up to 50%, according to the National Security Commercial Law Section 232.
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India Ministry of Commerce authorities say the average US import fare is about 7.5%, while the US commerce representative’s office highlighted up to 100% cars and an average 39% average tariff of US agricultural products.
