Washington imposes 50 percent tariff on Indian goods entering the US

ABC NEWS (Australia)

Indian exporters are bracing for turmoil as an extra 25 percent tariff on all Indian goods entering the US takes effect from today. It means shipments to the United States will now face duties of up to 50 percent, after President Donald Trump slapped on the extra tariffs to punish New Delhi for buying Russian oil.

Transcript

00:00It's certainly a bruising moment for Indian exporters.

00:06From today, many Indian-made goods landing in the United States will be slapped with

00:11an extra 25% tariff, which the US has actually called a sanction for India's purchasing

00:17of Russian oil.

00:19That takes total US duties on Indian products to as high as 50%, which analysts say is pretty

00:25much the equivalent of a trade embargo.

00:27The US is India's biggest export market, worth nearly $90 billion last year.

00:33So this is a major hit, especially for textiles, seafood and jewellery.

00:38They're already seeing orders cancelled, with American buyers shifting to more favourable

00:41markets like Bangladesh and Vietnam.

00:44Exporter groups are warning of heavy job losses if this continues.

00:48Now there are a couple of carve-outs.

00:52Pharmaceuticals and electronics, including iPhones assembled in India, will escape the tariffs

00:56for now.

00:57And economists say India's overall growth story won't be derailed.

01:02But in the short term, the pain is real.

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