Efforts Underway To Resolve Ongoing Tariff Discord With US, Say Government Sources
Tariff impact is unlikely to be as severe as feared, given India’s diversified export base.
As 50% US tariffs on India kicked off starting Wednesday, government sources have indicated to NDTV Profit that efforts are underway to resolve the ongoing discord on the matter. Sources said that the current phase is a temporary one in an otherwise long-term relationship between both the nations.
They further added that the exporters need not panic. It is also understood by NDTV Profit through sources that the impact is unlikely to be as severe as feared, given India’s diversified export base. The details have emerged after US President Donald Trump's decision to impose additional duty on Indian imports came into effect on Wednesday.
Additional 25% tariff, linked to India’s continued purchases of Russian oil, was added to an earlier 25% duty already in place. As a result, total tariffs now reach as high as 50% on products from India, including garments, footwear, gems and jewellery, sporting goods, furniture and chemicals.
These levels are among the highest Washington has imposed globally, comparable to rates applied to Brazil and China, reported Reuters.
Owing to the same the domestic stock market traded in a volatile range on Thursday, a day after the tariff on India came into effect. Multiple stocks saw high trading activity and volatility in their price as well as volume.
