Ministry flags secondary impact of steep US duties

The immediate impact of US tariffs on Indian exports may appear limited, but secondary effects pose economic challenges

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NEW DELHI: The immediate impact of recent US tariffs on Indian exports may appear limited but their secondary and tertiary effects on the economy pose challenges that must be addressed, the finance ministry said in a report on Wednesday amid the US effecting a steep 50 per cent tariff on shipments from India. Ongoing India-US trade negotiations are critical in addressing these issues including the secondary and tertiary effects of high tariff by the US on Indian goods, the monthly economic review released by the ministry said.

The steep 50 per cent tariff on Indian goods entering the US, which came into effect from August 27, would impact exports worth more than USD 48 billion. The sectors which would bear the brunt of the high import duties imposed by the Trump administration include textiles/clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.