Donald Trump's reciprocal tariffs: 26 per cent tariff on India raises concerns in market

KOCHI: US President Donald Trump's announcement of a 26 percent tariff on Indian products pose a serious challenge to the country's export sector. The state's export sector will also be severely hit. Kerala's major exports include seafood, coir, spices, textiles, diamonds, gold jewellery and coconut products. The US currently levies an average tariff of 3% on Indian products.

Trump has announced the highest tariffs of the century on products from 60 major countries, including India. Compared with other nations in Asia, the US imposed tariff on India is low. The reciprocal tariffs will take effect on April 9. Until then, a 10% basic tariff will be levied on all products imported from the United States.

Meanwhile, India will benefit from the exemption of pharmaceuticals and semiconductors from the tariff. Aluminum, steel, vehicles and vehicle components were exempted this time as they were previously taxed.

The Union Commerce Ministry is examining the implications of Trump's announcements.

Trump announced a 34% tariff on Chinese products in addition to the 25% previously announced. China charges a 67% tax on American products. It also imposed retaliatory tariffs of 49% on Cambodian products and 46% on Vietnamese products. The European Union has 20%, and Japan has 24%.

"Despite Prime Minister Narendra Modi being a close friend, India has imposed a 52% tariff on American products for decades. The US has not imposed any tariff on Indian products for years. India is not treating America fairly." Said US President Donald Trump.