Trump's 25% Tariff Hit Triggers Layoff Warning From Exporters

No Russia penalty yet; key meetings between Goyal and exporters today, tomorrow

- SHREYA NANDI & SHINE JACOB

US President Donald Trump on Friday formally imposed a sweeping 25 per cent import tariff on Indian goods, sparking fears of mass layoffs among exporters, especially in the textiles sector.

Though the anticipated "penalty" tied to India's purchases from Russia was absent, the tariff hike placed Indian exporters at a disadvantage compared with regional peers such as Bangladesh, which secured a lower 20 per cent rate from Washington.

According to a White House executive order, the new tariffs are set to come into effect from August 7 and will be imposed over and above the existing World Trade Organization-compliant tariffs, except for a special concession granted to the European Union. The list excluded China, which will continue to attract a 30 per cent tariff.

The presidential order listed higher import duty rates ranging from 10 per cent to 41 per cent for 69 trading partners, increasing the US' effective tariff rate to about 18 per cent, up from 2.3 per cent last year, according to Capital Economics.