<p class="bodytext">India is in for tough times with the enhanced tariffs dictated by US President Donald Trump coming into effect and the US taking a more aggressive position on the matter. By calling the conflict in Ukraine “Modi’s war” and stating that “the road to peace runs, in part, through New Delhi”, the US has adopted a rhetoric of double-speak. It says “everybody in America loses because of what India is doing”. This is when China accounts for 47% of Russia’s oil exports and India 37%. The EU, Turkey and Japan are major buyers of Russian oil or gas. But the logic or justice of the policy is immaterial when it is irrationally driven. India should now concentrate on the imposts and ways to counter their impact.</p>.India drills tariff wall for elephant to pass .<p class="bodytext">India has been handed the highest levies in Asia, and they will hit more than 55% of the goods shipped to the US, its biggest export market. While some of the key products such as electronics and pharmaceuticals have been exempted for now, the duties will hit a large segment of industries including clothing, gems and jewellery, leather and footwear. According to the Global Trade Research Initiative, nearly two-thirds of India’s exports to the US, amounting to $60.2 billion out of $86.5 billion, will fall into the high-tariff bracket. Many export goods like clothing will be priced out of the US market by products from countries such as Vietnam and Bangladesh which are in the lower tariff brackets. A fall in exports will hit production and lead to job losses. Many manufacturing units in Tirupur, Surat, etc. have halted production. The impact has also been felt in the stock market.</p>.<p class="bodytext">Prime Minister Narendra Modi has said that the country would face the situation with determination. He has ruled out any compromise on the interests of the farmers and small-scale industries, and has underlined self-reliance as a key response to the emerging situation. India will also have to diversify its exports, find new markets, and expand the existing markets. This will not be easy. While India enjoyed a healthy trade surplus of over $45 billion with the US, it has a trade deficit of $59 billion with Russia and of $100 billion with China. The government will also have to back small units affected by the tariff hike with financial aid to help them stay afloat. The country is entering a period of tariff-induced uncertainty but no threats or coercion should make it compromise on its interests.</p>
<p class="bodytext">India is in for tough times with the enhanced tariffs dictated by US President Donald Trump coming into effect and the US taking a more aggressive position on the matter. By calling the conflict in Ukraine “Modi’s war” and stating that “the road to peace runs, in part, through New Delhi”, the US has adopted a rhetoric of double-speak. It says “everybody in America loses because of what India is doing”. This is when China accounts for 47% of Russia’s oil exports and India 37%. The EU, Turkey and Japan are major buyers of Russian oil or gas. But the logic or justice of the policy is immaterial when it is irrationally driven. India should now concentrate on the imposts and ways to counter their impact.</p>.India drills tariff wall for elephant to pass .<p class="bodytext">India has been handed the highest levies in Asia, and they will hit more than 55% of the goods shipped to the US, its biggest export market. While some of the key products such as electronics and pharmaceuticals have been exempted for now, the duties will hit a large segment of industries including clothing, gems and jewellery, leather and footwear. According to the Global Trade Research Initiative, nearly two-thirds of India’s exports to the US, amounting to $60.2 billion out of $86.5 billion, will fall into the high-tariff bracket. Many export goods like clothing will be priced out of the US market by products from countries such as Vietnam and Bangladesh which are in the lower tariff brackets. A fall in exports will hit production and lead to job losses. Many manufacturing units in Tirupur, Surat, etc. have halted production. The impact has also been felt in the stock market.</p>.<p class="bodytext">Prime Minister Narendra Modi has said that the country would face the situation with determination. He has ruled out any compromise on the interests of the farmers and small-scale industries, and has underlined self-reliance as a key response to the emerging situation. India will also have to diversify its exports, find new markets, and expand the existing markets. This will not be easy. While India enjoyed a healthy trade surplus of over $45 billion with the US, it has a trade deficit of $59 billion with Russia and of $100 billion with China. The government will also have to back small units affected by the tariff hike with financial aid to help them stay afloat. The country is entering a period of tariff-induced uncertainty but no threats or coercion should make it compromise on its interests.</p>
