New Delhi [India], April 3 (ANI): Exporters in India’s textile, engineering goods, electronic, and Gems and Jewellery sectors are anticipated to be most significantly impacted by the tariffs introduced by Donald Trump.
Trump
according to experts.
US President Donald
Trump
has imposed a 26 percent duty on goods coming from India. This move, disclosed early Thursday morning IST, encompasses
Trump
declaring mutual tariffs on numerous nations, such as India.
Ajay Bagga, an authority on banking and international stocks, informed ANI that these tariffs are founded on inflated assessments, encompassing not only genuine custom charges but also purported currency manipulation and GST. He characterized the change in U.S. trade strategy as transitioning from “America First” to “America Alone.”
He stated, “The domestic sectors within India enjoy protection against initial impacts; however, industries such as textiles, engineering goods, electronics, and gems & jewelry face immediate repercussions due to their export nature. This morning has witnessed a decline in metals alongside crude oil prices. Pharmaceutical companies remain cautious since they expect sector-specific tariffs to affect them.”
Bagga pointed out that although India’s domestic sectors may not experience an immediate effect, exporters will face the burden of higher expenses.
The unexpected introduction of tariffs is anticipated to affect India’s economy through various channels. Increased duty rates might result in a reduction of Indian exports, diminishing profit margins for those involved in exporting.
Moreover, investors might redirect their investments towards more secure options like gold, the Japanese yen, the Swiss franc, and Japanese government bonds. This shift could consequently impact the flow of capital into emerging markets.
Bagga pointed out that the stock market initially responded to the news by flocking toward safer investments and shedding more volatile assets. He cautioned that the assured economic downturn could exert significant pressure on the markets in the following days.
He stated, “What was once uncertain has now become a definite prediction of economic and market distress. Initially, people tend to seek refuge in safer investments and unload risky assets.”
The introduction of these new tariffs might present a substantial obstacle for Indian exporters, as they must now cope with higher expenses and diminished competitiveness within the US market. Given the anticipated additional economic repercussions, participants from various sectors will be keeping a close watch on this development. (ANI)
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