US Slaps 26% Tariff on India, Lower Than Asian Peers
The U.S. slapped a 26% tariff on imports from India in a setback to the South Asian nation's expectation of getting relief from President Donald Trump's global trade policy that has unnerved world markets for weeks.
A baseline 10% baseline tariff starts on Saturday before the remaining, higher reciprocal tariff takes effect from April 9.
"They (India) are charging us 52% and we charge almost nothing for years and years and decades," Trump said at the White House while announcing the reciprocal tax.
Trump has slapped higher duties on other countries, including 34% on China on top of a 20% tax announced earlier, and 46% on Vietnam.
India gains a natural competitive advantage in several key sectors due to the relatively lower tariffs imposed, research firm Global Trade Research Institute said in a note.
Nearly $14 billion worth of electronics products and over $9 billion worth of gems and jewellery are among the top sectors to be hit by the U.S. tariffs.
The Trump administration, however, exempted pharmaceutical exports from the tariff bringing cheer to India's pharma industry. The U.S. accounted for nearly a third of India's pharmaceutical exports - mainly cheaper versions of popular drugs - with sales of about $9 billion last fiscal year.
Shares of Indian drugmakers rose nearly 5% in early trade on Thursday in contrast to the drop in the broader stock market.
India's export competitiveness would be less impacted than key rivals due to its position in the middle of the tUS Slaps 26% Tariff on India, Lower Than Asian Peers
The U.S. slapped a 26% tariff on imports from India in a setback to the South Asian nation's expectations of getting relief from President Donald Trump's global trade policy that has nervous world markets for weeks.
A baseline 10% baseline tariff starts on Saturday before the remaining, higher reciprocal tariff takes effect from April 9.
"They (India) are charging us 52% and we charge almost nothing for years and years and decades," Trump said at the White House while announcing the reciprocal tax.
Trump has slapped higher duties on other countries, including 34% on China on top of a 20% tax announced earlier, and 46% on Vietnam.
Source : Reuters
