Online Reporter
MUMBAI/NEW DELHI — Indian exporters are bracing for a sharp decline in US orders after trade talks collapsed and Washington confirmed steep new tariffs on the South Asian nation’s goods take effect from today, escalating tension between the strategic partners.
An additional 25 percent duty announced by President Donald Trump, confirmed in a notice by the Homeland Security Department, takes total tariffs to as much as 50 percent, among Washington’s highest, in retaliation for New Delhi’s increased buying of Russian oil.
“The government has no hope for any immediate relief or delay in US tariffs,” said a commerce ministry official, who sought anonymity for lack of authorisation to speak to media.
Exporters hit by tariffs would receive financial assistance and be encouraged to diversify to alternative markets such as China, Latin America and the Middle East, the official added.
However, the commerce ministry did not immediately respond to an email seeking comment on the latest notice.
The new duties will apply from 12:01am today, it showed. Exceptions are shipments in transit, humanitarian aid, and items under reciprocal trade programmes.
The Indian rupee fell to a three-week closing low of 87,68 against the dollar, despite recovering some ground after suspected central bank intervention to support it.
The benchmark equity indexes and closed down 1 percent each, for their worst sessions in three months.
Wednesday’s tariff move follows five rounds of failed talks, during which Indian officials had signalled optimism that tariffs could be capped at 15 percent.
Officials on both sides blamed political misjudgment and missed signals for the breakdown in talks between the world’s biggest and fifth-largest economies, whose two-way trade is worth more than US$190 billion.
White House trade adviser Peter Navarro and US Treasury Secretary Scott Bessent have accused India of indirectly funding Russia’s war against Ukraine by boosting Russian oil purchases. — Reuters
