How will Trump’s 50% tariffs on India impact its economy?
The Indian economy may have a coup of billions of dollars after increasing the tariffs of President Donald Trump on Indian goods, on objections to oil trade with Russia, one of the highest taxes of any trade partner.
Trump had previously brought 25% tariff to Indian goods due to the country’s high trade barriers.
Although only 20% of India’s exports of goods are connected to 2% of the GDP-or GDP, some sectors are disproportionately exposed. UBS estimates that exports of $ 8 billion, including jewels and jewels, clothing, textiles and chemicals, are the most vulnerable.
According to the order, new tariffs will come into force within 21 days, while the tariffs announced before will enter into force on Thursday.
“There may be an extra symbolism with 25% extra tariff from India,” Annex Wealth Management Chief Economist Brian Jacobsen said. He said. “The task does not come into force for 21 days. This is a very large window to provide an offamp.”
Economists estimated that the previously declared import tasks would be “marginal disadvantage” to India’s economic growth due to worldwide trade.
However, some sectors of the Indian economy are exposed to trade with the US more than others.
“In terms of affected sectors, jewels and jewelery, clothing, textiles and other chemicals are exposed to US tariffs more, and we can see some target support measures from the government,” UBS Gupta Jain said on August 5th. He said.
However, investors in Indian stocks will remain partially isolated from the effect of tariffs.
According to Societe General Equality Strategists led by Rajat Agarwal, for example, the Indian comparison index, for example the Indian comparison index, for example, is “about 9% direct exposure to the United States”.
However, IT services are not targeted under the current tasks on the goods.
Agarwal added a note to customers before the last announcement of the White House on 6 August. “The effect of tariffs for stocks was mainly fed through a weaker and higher currency volatility.”
Similarly, analysts point to India’s major pharmaceutical exports to the United States, which is likely to be protected from tariffs.
India also exported steel and aluminums to the United States, but in these goods, trade is taxed by a separate executive order.
Similarly, semiconductors and derived electronic products are exempt from mutual tariffs. AppleIt is expected to be largely affected by tariffs, which have large -scale production operations in India.
