US Imposes 50% Tariff on Indian Goods: Labour-Intensive Sectors to Bear the Brunt

The United States has imposed a steep 50% tariff on Indian goods entering the country from August 27, a move that is expected to have far-reaching consequences for labour-intensive sectors in India. The tariff hike is likely to affect a wide range of industries, including textiles, apparel, leather, and handicrafts, which are heavily reliant on exports to the US. The Indian government has expressed concern over the move, stating that it will have a significant impact on the country’s export-oriented sectors. The US is one of India’s largest trading partners, and the tariff hike is expected to lead to a decline in exports to the country. The labour-intensive sectors, which are already struggling with high production costs and low profit margins, will be the worst hit. The textile industry, which is one of the largest employers in India, is expected to be severely impacted, with many small and medium-sized enterprises (SMEs) facing the risk of closure. The apparel industry, which has been growing rapidly in recent years, will also be affected, with many exporters facing difficulties in competing with other countries. The leather industry, which is another significant exporter to the US, will also be impacted, with many manufacturers facing difficulties in maintaining their export volumes. The handicrafts sector, which is a significant employer of skilled artisans, will also be affected, with many exporters facing difficulties in competing with other countries. The Indian government has urged the US to reconsider its decision, stating that it will have a negative impact on the country’s economy. The government has also announced plans to provide support to the affected sectors, including providing financial assistance and promoting exports to other countries. However, the impact of the tariff hike is expected to be significant, and many industries are likely to struggle to cope with the new reality. The US has imposed the tariff hike in response to India’s decision to impose retaliatory tariffs on US goods, following the US decision to withdraw India’s benefits under the Generalized System of Preferences (GSP) programme. The GSP programme allows developing countries to export goods to the US at zero or low tariffs. India has been a significant beneficiary of the programme, with many of its exports to the US being duty-free. However, the US has withdrawn India’s benefits under the programme, citing concerns over India’s trade practices. India has responded by imposing retaliatory tariffs on US goods, which has led to the US imposing the 50% tariff on Indian goods. The trade tensions between the two countries have been escalating in recent months, with both sides imposing tariffs on each other’s goods. The impact of the trade tensions is expected to be significant, with many industries in both countries likely to be affected. The Indian government has urged the US to engage in talks to resolve the trade disputes, stating that it is in the interest of both countries to have a free and fair trade relationship. However, the US has shown no signs of backing down, and the trade tensions are likely to continue in the coming months. The Indian economy is expected to be significantly impacted by the trade tensions, with many industries facing difficulties in exporting goods to the US. The country’s exports to the US are expected to decline significantly, which will have a negative impact on the country’s trade balance. The Indian government has announced plans to promote exports to other countries, including China, the European Union, and the Association of Southeast Asian Nations (ASEAN). However, the impact of the tariff hike is expected to be significant, and many industries are likely to struggle to cope with the new reality. The labour-intensive sectors, which are already struggling with high production costs and low profit margins, will be the worst hit. The Indian government has urged the US to reconsider its decision, stating that it will have a negative impact on the country’s economy. The government has also announced plans to provide support to the affected sectors, including providing financial assistance and promoting exports to other countries.

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