US President Donald Trump has recently announced that the US will impose a retaliatory tariff of 26% on goods imported from India. This decision is part of the Trump administration’s tough trade policies against countries that impose high tariffs on US products. Trump specifically mentioned India and Brazil, saying that these countries impose excessive tariffs on American goods, which is unfair to American trade.Following this announcement, the Indian stock market witnessed a slight decline. The Nifty 50 index closed down 0.35% at 23,250.1, while the BSE Sensex closed down 0.42% at 76,295.36. The biggest impact was seen in the IT sector, where the Nifty IT index fell 4.2%, its biggest drop in two years. Analysts believe that the fear of a US recession could impact the revenue of Indian IT companies. The US has also imposed tariffs on other countries at various levels. 34% tariffs have been imposed on China, 32% on Taiwan, 46% on Vietnam, 20% on the European Union, and 24% on Japan. These tariffs are aimed at reducing the US trade deficit and protecting domestic industries.Experts believe that these duties could pose challenges to Indian exporters, especially in the automobile and IT sectors. However, some sectors, such as pharmaceuticals, are exempted from these duties, which could benefit them. Moreover, the Indian rupee witnessed mild strength against the US dollar, outperforming other Asian currencies.According to international trade expert Abhijit Das, “These retaliatory tariffs imposed by the US are a matter of concern for India. We need to take strategic steps to protect our trade interests.”The 26% retaliatory tariff imposed by the US on India could increase tensions in trade relations between the two countries. The Indian Government and industries need to make joint efforts to address this challenge, so as to minimise the negative impact on Indian exporters and protect long-term business interests.
Reporting to True To Life News