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US Tariffs on India to Take Effect, Economic Impact Expected

by rtvenglish
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Washington/Delhi: Additional US tariffs on Indian imports are set to take effect from 12:01 a.m. (US time) on August 27, following Executive Order 14329, according to the Department of Homeland Security via Customs and Border Protection (CBP). The tariffs, first signed by President Donald Trump on August 6, are expected to add between 0.2% and 0.5% to India’s GDP—approximately ₹2.6 lakh crore (\$30 billion). Key sectors likely to be impacted include aluminum, steel, vehicles, shrimp, gemstones, jewelry, jute, smartphones, electronics, and food products.

The tariffs follow ongoing trade tensions between India and the US, despite prior discussions between Trump and Russian President Vladimir Putin that raised hopes of relief. The decision coincides with India’s increasing imports of Russian oil, which have risen from 1% prior to February 2022 to 35% currently, drawing criticism from US trade advisor Peter Navarro. Navarro also accused India of benefiting from Russian oil while misleading the US, describing the country as aligning with Kremlin interests. He warned that the tariffs could affect trade benefits from India’s agreements with other countries, including the recent India-UK jute deal, while also noting India’s growing engagement with China.

President Trump has indicated that the deadline for the tariffs will not be extended, reinforcing the US stance on trade competitiveness and market enforcement.

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