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India is preparing for another strong trading blow, since the United States on Wednesday performs additional customs duties in general various Indian products.
Half of India’s exports to the United States purposefully, emphasizing the fragile trade relations between the two countries.
Donald Trump initially announced 25% of the duties on Indian products, but signed an executive decree at the beginning of this month, as a result of which an additional 25% of the responsibilities from the Russian oil market from New Deli, which led to a total tariff burden of 50%.
The US president, who caused strong shocks in world trade after returning to the White House in January, announced the imposition of additional punitive duty in India, because the Asian giant continues to buy oil from Russia.
Despite the warm welcome to his Russian colleague Vladimir Putin in Alaska, he did not cancel this measure, which is aimed at the theory to limit Russia’s income and, therefore, its ability to finance its military efforts in Ukrainian territory.
India is one of the main Russian raw buyer after China. According to the official data of the Ministry of Indian Ministry of India, the number of Russian oil, introduced in 2024, reached almost 36% of the total, although it did not exceed 2% before the war began in February 2022.
For New Deli, the choice is pragmatic. The production of Persian Gulf states is distributed with priority in Europe, and India is forced to switch to other suppliers, which facilitates the decision of the old epir to stop the import of Russian hydrocarbons for the most part.
According to the Government of India, tariffs will affect export in the amount of $ 48.2 billion. USA (41.5 billion euros). Officials warned that new responsibilities could make American missions commercially unstable, causing job loss and slowing economic growth.
In recent years, trade in India and the USA has been expanded, but remains vulnerable to access in the market and internal political pressure. India is one of the fastest growing economies in the world and may face recession pressure.
Areas for which responsibilities will be affected
Evaluation of the global initiative to study the trade based in New Delhi show that the areas of labor stress, such as textiles, precious stones and jewelry, leather species, food and cars, will be more affected.
“The new tariff regime is a strategic shock that threatens to eliminate the long presence of India in the United States, causing unemployment in the export sectors and the weakening of the industrial network,” said Adja Srivastava, the founder of the thought tank and former Indian.
Currently, the United States has freed additional responsibilities of certain areas, such as pharmaceuticals and electronic products that bring some relief to India, since its effect on these areas is important.
Exporters are afraid of losses
Puran Davar, an exporter of leather shoes in the city of Agra, North India, says that the industry will be a serious blow in the short term, unless domestic demand is increased, and other markets will be more open to Indian products.
“This is an absolute shock,” said Davar, whose transactions from the United States have increased in recent years. Dawar customers include a large Zara Fashion Retail company.
Davar, who is also the regional chairman of the leather export council – the export promotion body, said that the United States should understand that the sharp imposition of tariffs would mainly damage US consumers.
Organizations of exporters warn that new responsibilities can damage to small and medium -sized enterprises of India, which largely depend on the US market.
“This is a difficult situation. Some series of products will only become unstable overnight, ”said Adja Sakhai, General Director of the Federation of Indian Export Organizations.
Prime Minister promises not to succumb to pressure on the United States
Along with the imposition of duties, the US government continues to strive for more access to the agricultural and dairy sectors of India.
India and the United States held five rounds of negotiations on a bilateral trading transaction, but have not yet reached an agreement. This is largely due to the fact that New Deli resisted these areas the cheapest US imports, referring to fears that this would jeopardize the work of millions of Indians based on their lives.
Prime Minister Narendra Monty strives not to succumb to pressure.
“For me, the interests of farmers, small enterprises are of paramount importance. My government guarantees that they will not be affected, ”Monty told the meeting this week in his country, Gujarat.
He said that the world is evidence of “political economic egoism.”
The American delegation canceled the planned visit to New Deli this week at the sixth round of trade negotiations.
India plans reforms to facilitate a blow to duties
The government began to process reforms to stimulate domestic consumption and protect the economy.
This has changed the tax on tax and services, or tax tax to reduce the costs of fuses, cars and devices on the eve of the Great Hindu Festival Dilai in October.
The Government Council should meet at the beginning of the next month to block the reduction of taxes.
The Ministry of Trade and the Ministry of Finance discuss financial incentives that will include profitable interest rates on bank loans for exporters.
The Ministry of Trade also considers measures to expand exports to other areas, especially in Latin America, Africa and Southeast Asia.
Commercial negotiations that continue with the European Union may have a new urgent nature, since India is trying to reduce its dependence on the US market.
At the same time, New Dagia, reacting, began the process of approaching Beijing. This is despite the fact that relations between the two Asian forces passed a storm after the deadly conflicts of the armies of the two countries in the Himalayas in 2020.
Stimulation of the domestic market is currently necessary for the Indian economy, since economists predict that in the absence of an agreement between Washington and New, the growth of the India economy can slow down, decreasing below the barrier by 6%.
The IMF predicted at the end of July that India’s growth will reach 6.4% of GDP this year.
After returning to the President, the US President, the waves of new, much higher customs duties for products from around the world imported in the United States, which are currently on average than in the early 1910s, with the exception of several weeks of 2025, according to the World Organization.