India and the USA proceed to share a “complete international strategic partnership anchored in shared pursuits, democratic values, and sturdy people-to-people ties,” the Ministry of Exterior Affairs (MEA) stated on Friday, as recent US tariffs triggered renewed commerce tensions between the 2 international locations.
Responding to a query in the course of the weekly media briefing, MEA spokesperson Randhir Jaiswal stated, “This partnership has weathered a number of transitions and challenges. We stay centered on the substantive agenda that the 2 international locations have dedicated to and are assured that the connection will proceed to maneuver ahead.”
Additionally Learn:India’s export loss resulting from larger US tariffs restricted to 0.3 to 0.4% of GDP: Report
Trump slaps blanket 25% tariff on Indian items
US President Donald Trump, by an government order signed on July 31, imposed a flat 25 per cent tariff on all items from India, with no product-level exemptions, in keeping with a report by the International Commerce Analysis Initiative (GTRI). The order will stay in pressure till a bilateral commerce and safety settlement is reached, and a subsequent order is issued by the US President.
The GTRI described this transfer as one of many “hardest commerce actions” taken by the US in opposition to a serious buying and selling accomplice in recent times. The flat tariff will take impact from August 7 and can be levied along with commonplace MFN (most-favoured nation) duties.
Important sectors like pharma, smartphones to be hit arduous
India’s exports in key sectors equivalent to petroleum merchandise ($4.1 billion), smartphones ($10.9 billion), and prescription drugs ($9.8 billion) are anticipated to take a serious hit because of the lack of exemptions. Different sectors like engineering items, electronics, and textiles may also really feel the influence.
GTRI estimates present that India’s complete items exports to the US may decline by almost 30 per cent, from $86.5 billion in FY2025 to $60.6 billion in FY2026.
Additionally Learn:US Hits India With Throughout-the-Board Tariff: 25% obligation on all imports amid stalled commerce talks
Trump cites excessive Indian tariffs, Russia ties as purpose
Earlier this week, Trump introduced a separate 25 per cent reciprocal tariff on Indian items and extra penalties over India’s continued power commerce with Russia. In a publish on Reality Social, he wrote, “India can be paying a tariff of 25 per cent,” beginning August 1.
He additionally warned of secondary tariffs of as much as 100 per cent on international locations persevering with to purchase Russian power, except Russia calls a ceasefire in Ukraine. Whereas calling India a “buddy,” Trump accused New Delhi of getting “probably the most strenuous and obnoxious non-monetary commerce boundaries of any nation,” and claimed India buys “a overwhelming majority” of its navy gear from Russia.
India started talks early, however deal stays elusive
India was among the many first international locations to provoke commerce negotiations with Washington to handle the tariff dispute. Trump had repeatedly signalled optimism, stating as just lately as final week {that a} deal was imminent.
Nevertheless, his newest transfer suggests a hardening stance forward of the upcoming US elections. “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” Trump wrote, ending his publish with “MAGA” (Make America Nice Once more).
(With inputs from businesses)
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