Trump's Tariffs: A Twisting Tale of Trade Tensions

US President Donald Trump's 27% tariffs on Indian imports spark market uncertainty, affecting key sectors like textiles, pharmaceuticals, and jewelry. Industry leaders foresee a realignment in global trade, with India's competitiveness balancing impacts. Experts urge increased efficiency in exports and anticipate further US-India trade collaboration.

President Donald Trump's recent declaration of 27% tariffs on Indian imports has sent ripples of uncertainty through global markets. Indian exports, particularly in sectors like textiles, pharmaceuticals, and jewelry, now face new obstacles as experts predict a realignment in global trade and manufacturing chains.

The Trump administration argues the hike in duties counters India's high tariffs on US goods, aiming to reduce America's trade deficit. Industry leaders urge India to respond by enhancing export efficiency and value addition to mitigate potential impacts. Despite short-term volatility, India's economic resilience is expected to limit GDP impact to 0.1%, with a longer-term neutral outcome.

Continuous US-India collaboration through a bilateral trade agreement remains a goal, say industrialists. Meanwhile, stakeholders are assessing the far-reaching effects of this policy on Indian exports, significant due to their market share in US sectors, ready to adapt to the changing trade landscape.

(With inputs from agencies.)