A 50% tariff rate will be the highest levy among any U.S. trading partner, with some sectors of Indian economy more exposed than others.
Donald Trump raised tariffs on Indian goods to 50%, with the new rate set to go into effect in 21 days.
Under 20% of India’s total goods exports, or 2% of its GDP, were exposed to the United States.
Tariff exemptions for pharmaceuticals and semiconductors and electronics goods meant economists had previously expected a «marginal downside» hit to India’s economy.
India’s economy could take a multibillion dollar hit after President Donald Trump raised tariffs on Indian goods to 50% — one of the highest levies on any trading partner — over objections to the South Asian country’s oil trade with Russia.
Trump had previously imposed tariffs of 25% on Indian goods due to the country’s high trade barriers.
While only around 20% of India’s goods exports — or 2% of GDP — are U.S.-bound, certain sectors are disproportionately exposed. UBS estimates $8 billion worth of exports are most vulnerable, including gems and jewellery, apparel, textiles, and chemicals.
