US Issues Formal Notice on Extra 25 per cent Tariffs on Indian Goods
The US has formally notified 50 per cent tariffs on Indian products effective from Wednesday, after India-US ties deteriorated following the collapse of trade deal negotiations and US discomfort over India’s purchase of Russian oil amid the ongoing Russia-Ukraine war.
A US Homeland Security notification confirmed Washington will impose an additional 25 percent tariff on all Indian-origin goods from Wednesday.
The new duties will apply to goods entering the US for consumption or withdrawn from a warehouse for consumption from 12:01 am EDT on Wednesday or 9:31 pm IST, according to the Homeland Security notice.
Indian exports will now face US duties of up to 50 percent – among the highest imposed by Washington – after President Donald Trump announced extra tariffs as a punishment for New Delhi’s increased purchases of Russian oil earlier in August.
The steep tariff is expected to impact several labour-intensive export sectors such as shrimp, apparel, leather and gems & jewellery.
The high additional import duties would affect more than half of the USD 86 billion Indian exports to America, while the remaining items, including pharmaceuticals, electronics, and petroleum products, will continue to be exempt from the levy, according to PTI.
According to exporters, this “prohibitive” duty will drive out a number of Indian goods from the US market, as major competing countries like Bangladesh, Vietnam, Sri Lanka, Cambodia, and Indonesia have much lower duties on their goods.
Quoting economic think tank GTRI, the news agency reported that US tariffs will impact 66 per cent of India’s USD 86.5 billion exports to America.
It said that USD 60.2 billion worth of goods will face 50 per cent duties from August 27, including textiles, gems, and shrimp.
About The Author
