US Hikes Import Tariffs on Indian Goods: Sectors Brace for Impact

From April 9, India will face increased import duties in the US on various products, notably agriculture, textiles, and electronics. The Global Trade Research Initiative reports that duties will sharply rise from a current baseline, impacting over 60 countries, including industry-specific tariff hikes on diamonds, chemicals, and machinery.

Starting April 9, Indian exports in several sectors like agriculture, textiles, and electronics will face heightened import duties in the US market, according to a report by the Global Trade Research Initiative (GTRI). The duties, set to rise from a baseline of 10 per cent to 27 per cent and more, aim to impose country-specific tariffs.

Currently, Indian goods are subject to a 25 per cent tariff on steel, aluminum, and automotive exports. This development means that sectors such as diamonds, chemicals, and machinery will see substantial tariff hikes, reaching up to 35.99 per cent for some categories. Over 60 countries will be affected by these trade measures.

In 2024, Indian exports in these categories were significant, including USD 6 billion from agriculture and processed foods, USD 11.88 billion from diamonds and gold, and USD 14.4 billion from electrical and electronics products. Previously, the weighted average tariffs for these goods were much lower, emphasizing the drastic impact of this change.

(With inputs from agencies.)