U.S. President Trump imposed tariffs of 10% to 49% on imports from various countries, including India, which faced a 27% tariff on its exports to the U.S.
The tariffs were justified under the International Emergency Economic Powers Act, citing a persistent trade deficit as a national emergency.
The tariffs will take effect from April 5, with higher rates for countries with large trade deficits.
Global stock markets, including those in the U.S., Europe, Japan, and India, experienced sharp declines due to the announcement.
India responded by evaluating the impact, exploring new opportunities, and continuing trade talks with the U.S. without immediate retaliation.
Sectors like diamonds and jewelry are at high risk due to their heavy reliance on the U.S. market, while the auto and aerospace sectors are expected to face minimal impact.
The U.S. criticized India's tariffs on goods like motorcycles and highlighted India's higher average tariff rates compared to China and the EU.
Despite the challenges, India’s adjusted tariff rates are lower than those of some Asian rivals, potentially providing a competitive advantage.
Vietnam (46%), Thailand (37%), Bangladesh (37%), Sri Lanka (44%) and Pakistan (30%)
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