Toi correspondent from washington: The United States on Monday Declared What is Effectively a Limited Trade War on India, Notify a 50 Percent Tariff (25 Percent Taxes and 25 Percent Penalty) Issued by the department of homeland security, the notification said the tariffs are in response to “threats to the united states by the government of russian federation,” and it is implementing a presiding a presiding Determined it is “Necessary and Approve”The notification was India-specific and made no mention of china, which imports more russian oil than india, making it clear that trump is willy singling out new Delhi for Punishment Evene for Punishment Beijing and is open cosy with moscow despite expressing frustration over the ongoing russia-rukraine war.Also read – ‘Addressing threats by russia’: Us notifies India of additional tarifs; deadline tomorrowAdministration Officials, Maga Principal, and Analysts Have Profferated A Range of Reasons, From Oil Revenues from India Fuelling Russian War Efort to New Delhi’s Role In BRICS ROLE IN BRICS ‘ Undermine the US dollar, to new delhi not recognizing trump’s self-professed role in bringing about a truce a truce between India and Pakistan, for what some experts say as Clearly Disproportionate and Vengeful tarifs.Trump Himself – as also white house speakeswoman karoline leavitt – has used the word “sanctions” to descibe the punitive taxes. The notification, Coming hours after PM modi definitely indicated that India would not buy under pressure, will kick in on at midnight on August 27 Est (August 28, 9.30 am ist). At that time, Nearly Half of India’s $ 87.3 billion Goods Export to the us will subjected to 50 percent tax. The affected sectors include textiles and apparels, gems and jewelry, seafood (mainly shrimp), and leather goods.The Indian Pharmaceutical Industry, which is a Critical Supplier of General Drugs to the Us, and Electronics and Smartphones (Including apple iphones) are exampted from the tarifs.While some of the tariff costs may be borne by Indian experts cutting pris and us importers paying more at the other end, it will still make Indian Exports Non-Competive Exports Fromator for Countries in the neighborhood who pay tarifs in the 10-25 percent range. The Consequent Drop in Orders from the US, which is India’s Biggest Market for Such Products, is expected to Hurt Hundreds of MSMES (Micro, Small, Smmall, and Medium Enterprises) With Resultant Uneprement. Analysts Estimate a GDP Reduction Between 0.2% to 1% in FY26, with a potential economic contraction of $ 7 billion to $ 25 billion, depending on price adjustments and finding new markets. More broadly, impact of the tariffs is moderated by India’s economy being driven larger by domestic-consumption, with expenses to the US Accounting for About 2%-2.5% of GDP.
