According to experts, goods from areas including agriculture, precious stones, chemicals, pharma, medical devices, electrical and machinery, can be affected by proceeding with the applying mutual tariffs on Indian products.
He said that these areas may face additional customs duty from the Trump administration due to high tariff differences or differences, which is the difference between the import duties levied by the US and India on a product.
At the level of a broad field, potential tariffs between India and the US differ in interval areas.
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The difference for chemicals and pharmaceuticals is 8.6%; 5.6%for plastic; 1.4%for clothes and clothes; 13.3%for diamonds, gold and jewelery; 2.5%for iron, steel and base metals; 5.3%for machinery and computer; 7.2%for electronics; And 23.1%for automobile and auto components.
“The higher the tariff gap, the worse than a sector, the exporter said,” said.
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According to the analysis of the think tank Global Trade Research Initiative (GTRI), the most difficult-in-agriculture in agriculture will be fish, meat and processed seafood, with $ 2.58 billion in exports in 2024, 27.83% tariff difference is faced.
A major export shrimp for the US will be quite less competitive due to the implementation of American tariffs.
Kolkata-based seafood exporter and Moda Moda Yogesh Gupta MD said, “Already our exports have faced antidemping and counterwalling duties in the US.
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He said that Indian exporters may get some relief if the US would impose similar tariffs on competitive countries – Ecuador and Indonesia.
India’s processed food, sugar and cocoa exports can also face heat as the tariff gap is 24.99%. Its exports were $ 1.03 billion last year.
Similarly, there is a tariff difference between grains, vegetables, fruits and spices ($ 1.91 billion shipments).
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Dairy products, with exports of $ 181.49 million, can be affected by 38.23% “severe”, “ghee, butter, and milk powder expensive and reducing their market share in the US,” said GTRI founder Ajay Srivastava.
Other products that may be affected include edible oil ($ 199.75 million exports and 10.67% duty gap); Alcohol, liquor, and souls ($ 19.2 million exports and 122.10% tariff difference); Living animals and animal products ($ 10.3 million exports and 27.75% difference).
Shri Srivastava said that tobacco and cigarettes, whose export value is $ 94.62 million in 2024, may remain unaffected, as the US already imposes 201.15% tariff, forms a negative tariff difference (-168.15%).
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In the industrial goods segment, sectors can be affected by American duties, including pharmaceuticals, jewelery, and electronics.
Mumbai -based engineering exporter SK Saraf said, “We are crossing our fingers due to the unexpectedness of the Trump administration on the tariff’s front. But if it will be imposed, it could be affected in the beginning, but not long. Not for a long time. The full burden, although will be on American consumers,” Mumbai -based engineering exporters SK Saraf said.
The pharmaceutical sector worth $ 12.72 billion in 2024, India’s largest industrial export, faces 10.90% tariff difference, which is the rising cost for generic drugs and special medicines.
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Exports can see diamonds, gold and silver, 13.32% tariff growth with $ 11.88 billion, increase jewelery prices and reduce competition.
Similarly, Electrical, Telecom and Electronics exports $ 14.39 billion exports 7.24% tariffs.
According to GTRI, machinery, boiler, turbine and computer, with exports of $ 7.10 billion, can see 5.29% tariff growth, affecting India’s engineering exports.
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“Chemicals (except pharmaceuticals), export of $ 5.71 billion, may be affected by 6.05% tariff, Indian characteristic reduces American demand for chemicals,” Mr. Srivastava said that adding clothes, clothes, yarn and carpets with $ 2.76 billion in exports, can face a 6.59% tale.
Rubber products including tires and belts, shipments of $ 1.06 billion, can withstand 7.76% tariffs, while paper and wood articles ($ 969.65 million) can have 7.87% tariffs. “Ceramic, glass and stone products, with $ 1.71 billion in exports, will withstand 8.27% tariffs, affect the demand. Footwear, with $ 457.66 million in export, faces a high 15.56% tariff difference,” he said.
However, Mr. Srivastava said that mutual tariff tariffs may not be the same as the difference as the US has indicated that they may also be factors in non-tariff barriers, VATs (GST), and the currency effect in its mutual tariff policy.
Published – 02 April, 2025 01:01 pm IST