US Tariff Hike Threatens India's Export Boom

Potential US tariff hikes on Indian products risk impacting goods from various sectors, including agriculture and machinery. The impending tariff differential aims to counter the existing high import duty gap, putting pressure on Indian exports like shrimp, pharmaceuticals, and textiles, and is expected to affect long-term trade relations.

Exports from India face a looming threat as the U.S. considers imposing reciprocal tariffs. Goods ranging from agriculture to machinery may face significant impacts if proposed tariff hikes, aimed at addressing import duty gaps, are implemented.

Key sectors expected to bear the brunt include agriculture, with shrimp exports becoming less competitive, and pharmaceuticals, potentially hampering generic drug affordability. The looming tariff policy could significantly alter trade relations between the two countries, experts warn.

Analysts emphasize the uncertainty surrounding the Trump administration's tariff strategy, highlighting concerns that additional duties could ultimately burden American consumers while challenging the competitiveness of Indian exports.

(With inputs from agencies.)