WHAT IMPACT  WILL U.S.A’s. TARIFF HAVE ON INDIA ?

By Anshika Khera

The U.S.A announces a tariff of 25 per cent and penalty on exports from India. It will be effective from August 1. After this announcement, India becomes the latest to join the list of countries facing higher tariffs under Trump’s Liberation Day trade strategy.

The United States is the largest market of auto parts exported from India . So the tariffs may impact the margins of auto component manufacturers like Sona Comstar and others. It may also affect the position against the suppliers from competitive markets like Canada and Japan.

Donald Trump, President of United States of America said as quoted, “ Remember, while India is our friend, we have , over the years , done relatively little business with them because their tariffs are far too high , among the highest in the world , and they have the most strenuous and obnoxious non-monetary trade barriers of any country.

Also they have always bought a vast majority of their  military equipment from Russia , and are India’s largest buyer of energy , along with China, at a time when everyone wants Russia to stop the killing in Ukraine – All things not good. India will therefore be paying a tariff of 25 percent plus penalty for the above , starting August 1st.”