Toi correspondent from Washington: The United States announced on Monday that what is a limited trade war on India, informs 50% tariff (25% taxes and 25% fine) on most goods from India.A notification issued by the Homeland Security Department said that the tariffs are in response to the “threats to the United States by the Russian Union government”, and it is implementing a presidential order that determines that it is “necessary and appropriate” to impose tariffs on India, which is directly or indirectly importing the Russian Federation oil.Notification was India-specific and made no mention of China, which imports more Russian oil than India, making it clear that Trump is punishing New Delhi for punishment, even gives a wide berth to Beijing and despite expressing disappointment over the ongoing Russian-Ukraine war, he is openly comfortable with Moscow.Administration officials, Maga principals and analysts have accepted several reasons from oil revenue from India, which inspires the Russian war attempt to weaken the US dollar in the role of BRICS in the role of New Delhi, does not recognize Trump’s self-profit role in telling New Delhi about a truss between India and Pakistan. Trump himself and the White House spokesman Karolin Levit has used the term “restrictions” to describe punitive taxes. Notification, in the coming hours after PM Modi, it was indicated that India would not be under pressure, kicking in EST (August 27, 9.30am IST) at midnight.At that time, about half of the $ 87.3 billion in India will be exported to the US, which will be subjected to 50% tax. The affected areas include textiles and Apple, gems and jewelery, seafood (mainly shrimp) and leather items.The Indian pharmaceutical industry, an important supplier of generic drugs for the US, and electronics and smartphones (including Apple iPhones) are exempted from tariffs.While some tariff costs can be borne by Indian exporters to be borne by American importers who cut prices and pay more at the other end, it will still make Indian exports non -perfect against the exporters of neighboring countries who pay tariffs in 10% -25% range. The resulting decline in US orders, which is India’s largest market for such products, is expected to hurt hundreds of MSMEs (Micro, Small and Medium Enterprises) with resulting pruning and unemployment. Analysts estimate that FY26 is estimated to have a GDP deficiency between 0.2% to 1%, with a possible economic contraction of $ 7 billion to $ 25 billion to find price adjustment and new markets. Broadly, the effect of tariff is operated extensively by domestic consumption by India’s economy, exporting US accounting for 2% -2.5% of GDP.
