Punitive U.S. tariffs could cause Kerala economy to regress into COVID-19 era, says State Finance Minister

Kerala Finance Minister Kn Balagopal said on Friday, August 8, 2025, the Punishment Tariffs of the United States (USA) can send shock waves through the Kerala economy.

Authorized, US President Donald Trump apparently to punish India from Russia to punish, the state economy’s ghost ruthless-19 pandemic period, he said.

Trump Tariffs: Live Updates

Mr. Balagopal, tariffs Kerala’nın seafood, spices, agriculture and pool sectors will hit hard, he said.

Mr. Balagopal said Mr. Trump’s real gambit’s threat of prohibitive tariffs, and the US to use a levy threat to open up with tremendous purchasing power for US products, including Russia, which is supplied by valuable uraniums and fertilizers.

“The first is the emperor of 14 lakh milk farmers of Kerala, less than foreign countries,” he said.

Therefore, large -scale spices, farm products, dairy products and seafood suppliers from Kerala will offer local suppliers lower prices to make their goods competitive in foreign markets. “As a result, suppliers will transfer the lack of income to farmers who will reduce the lack of income, wages and the benefits of workers,” Balagopal said.

Impact on the IT sector

He said the jury is still out of how punishing 50% tariffs will reach Kerala’s software industry. TATA Consultancy services (TCS) said that 12,000 mid -level employees, including senior personnel with decimal years, have dismissed 12,000 moderate employees.

Mr. Trump said that his “protectionist and isolationist” policies forced technical business candidates from Kerala, mainly software and hardware engineers. (Mr. Trump had previously warned Google, Meta and Microsoft’s other global software and information processing departments, as well as seemingly warned Indian capabilities to protect US businesses)

‘Trade Agreement UK is full of danger’

Mr. Balagopal said India’s trade agreement with England (UK) is full of danger for state economies.

“As they reduced import tax on luxury cars such as Jaguar and Land Rover from 100% to 10%, it would be good to greatly reduce the task on Pompom Girls and Import Scotch whiskey, and to remember that trade privileges will adversely affect the GST income of the states,” he said.

Mr. Balagopal, the lack of income, as well as other things, Kerala’nın expanding social welfare security network, state employees, retirees and elderly for the prison pension and health insurance programs will be expanding social welfare security network, he said.

Authorized, luxury cars to a negligible import tax from European countries to import, will not encourage production in India, so that India will not reduce the attempt to create more employment opportunities, he said. The measure will also affect the medium and small -scale industrial units that provide industrial parts as well as the automobile industry.

Balagopal, Britain, including Kerala Farm, seafood, meat, poultry and allied products to remove tariffs on allied products, he said.

“Products from Kerala, including milk, will have to compete with Scandinavian countries and Australia, which subsidize milk production and sell competitive rates. Similar products from India will probably remain on shelves,” he said.