Trump’s 50% tariff hits India: Additional 25% tariff comes into effect from today

 Trump’s 50% tariff hits India: Taking a tough stand on India's purchase of crude oil from Russia, the US has imposed an additional tariff of 25% from Wednesday. After this action by President Donald Trump, the total US tariff on Indian products has now reached 50%. According to news agency according to the order issued by the US Department of Homeland Security (DHS) on Monday, this additional tariff will apply to all Indian products consumed or taken out of warehouse in the US .

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US tariff attack on India,

Trump had announced a 25% tariff on India on August 7 itself, which came into effect along with 70 other countries. On the same day, he also made it clear that the duty rate would soon be increased to 50%, but India was given 21 days to reach an agreement.

Exporters stopped production

Exporters say that textile companies in Tirupur, Noida and Surat in Tamil Nadu have stopped working because cheap items are coming from countries like Vietnam and Bangladesh, causing them losses. There may also be problems in the lobster business. While US  buys40% of the lobster from India. Due to the increase in tax, the stock of lobster can accumulate, there may be a problem in supply and farmers may suffer losses.

Leather and footwear

India exports $4.1 billion in leather every year. The US's share in this is $870 million . A 50% tariff on India will benefit Vietnam and Indonesia significantly. Kanishk Maheshwari, co-founder and MD of Primus Partners India, said India's 1% share in the $100 billion US leather import market is set to reduce further. According to Nomura, India sends about 18% of its total exports to the US, which is about 2.2% of India's GDP.

Prime Minister Modi's response

Reacting to this move of America, Prime Minister Narendra Modi said that we will not compromise on the interests of farmers, livestock farmers and small industries. The pressure will definitely increase, but we will bear it.

Provisions for partial exemption

Indian products that have been shipped to the US before August 27 and which are approved for consumption in the US before September 17, 2025, will be exempted from 50% duty. For this, importers will have to give a certificate to US Customs under the special code HTSUS 9903.01.85.

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Seafood

India exports about Rs 60,000 crore worth of seafood to the US annually, with shrimp accounting for about 40% of the total consummation in American market. Meanwhile this Trump 50% tariff could wipe out exports worth Rs 24,000 crore. This is cutting prices for farmers. Andhra Pradesh is India's biggest shrimp-exporting state where lakhs of farmers could be affected.

Benefit to Pakistan

About 30% of exports to America will be duty free. These include medicines, electronics and petroleum products. Similarly, there will be a 25% tariff on 4% of Indian exports. This mainly includes auto parts. The benefit of this loss to India will be availed by countries like Bangladesh, Cambodia, China and Pakistan, on which less tariff has been imposed than India. Due to the heavy tariff imposed on India, it is not possible for Indian exporters to survive in the US market.

Millions of jobs at risk

According to think tank GTRI, India ships about $86.5 billion worth of goods to the US every year. Of this, about $60.2 billion will now face a 50% tariff. GTRI founder Ajay Srivastava said, that exports from the affected regions could fall by up to 70%. Overall exports to the America could fall by up to 43%, putting millions people of jobs at risk in India's export sector.