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The Chamber of Trade and Industry (CTI) has written a letter to Prime Minister Narendra Modi stating that the 50 per cent tariff imposed by the US could devastate key Indian industries and threaten the livelihoods of lakhs of Indians.
"The 50 per cent US tariff will have a devastating impact on India's textiles, leather, gems and jewellery, auto components, chemicals, pharma, seafood, electronics and other sectors," CTI Chairman Brijesh Goyal said. He explained that because of the increased tariffs, Indian goods will be up to 35 per cent costlier in the American market compared to competitors, prompting buyers to look elsewhere. According to CTI, the hike could affect more than USD 48 billion worth of Indian exports. Sectors like engineering goods, which saw exports of Rs. 1.7 lakh crore last year, are expected to take a sharp hit. Similarly, gems and jewellery exports worth Rs. 90,000 crore, and India's booming electronics shipments are also under severe threat Products that earlier faced a 10 per cent tariff will now carry a 50 per cent tariff, drastically raising costs for US buyers. Pharmaceutical exports, valued at Rs. 92,000 crore last year, will also face hurdles. Medicines that previously entered the US duty-free will now cost 50 per cent more, placing Indian pharma firms at a disadvantage compared to other suppliers, such as Vietnam. However, despite these losses, Goyal advised the government that India should respond firmly to the United States' steep tariff hike by imposing retaliatory tariffs on American goods. "India must not be afraid of this pressure. We should reduce our dependence on American imports and simultaneously explore new markets in countries such as Germany, the U.K., Singapore and Malaysia, where demand for engineering goods is rising. We must teach the US a lesson with counter-tariffs." In his letter to the Prime Minister, Goyal urged that India must reduce its dependence on American imports like minerals, precious stones, metals, aircraft equipment, plastics, and chemicals. The US government's decision, effective August 27, comes on top of a 25 per cent tariff already in place since August 7. CTI General Secretaries Rahul Adlakha and Rajesh Khanna also highlighted that India's exports to the U.S. include 53 per cent pharmaceuticals, 53 per cent textiles and apparel, 37 per cent gems and jewelry, 28 per cent auto components, 13 per cent chemicals, and 22 per cent seafood. They noted widespread confusion among traders about how the tariffs will affect goods already shipped or in transit, as no clarity has been provided by the Washington administration. (ANI)
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