The United States has dropped 50% of the tariffs on India. This has also affected India's textile to seafood sectors. In places like Surat, Noida and Tirupur, some companies have stopped production. Experts are speculating that Trump tariffs can affect India's growth from 0.3 to 0.5%. At the same time, US exports of up to 70% of India, or $ 55 billion, could be reduced.
However, in the midst of all this, the United States is going to buy a large number of things from India, because the United States has no choice but to buy from India. If the United States buys these items from somewhere other than India, it will have to pay more in imports. Also, no other country can supply these items at a cheaper rate as per American requirement.
This is probably the reason why US President Donald Trump has not imposed a tariff on these items or has a basic tariff on only 25%. These items are still being exported to the US as before.
Which items are exempt from tariffs?
Indian products that are exempt from the US from tariffs include renewable products such as pharma fields (drugs and devices), electronics (smartphones and electronics products), extra energy and petroleum. While only 25% of the tariffs have been imposed on some products, including iron-seeds, aluminum, copper and their output, etc.
Why is America not imposing tariffs on these things?
Pharmaceuticals: India is the largest supplier of generic drugs and the US Health Care System depends very much on cheap Indian drugs. If 50 percent of the tariffs are imposed on this sector, the drugs will be expensive, which will increase political pressure and displeasure of the public in the United States.
Smartphones and Electronics: In the American market, a large part of the supply chain of Apple, Samsung and other companies has shifted to India. After being removed from China, these companies are increasing their production in India. If tariffs are imposed on these items, smartphones and electronics will be expensive for American customers. Not only that, the sales of American companies will also be affected. While China wants to make India a hub of building to confront, the area has been exempted from tariffs.
Energy and renewable products: The United States also needs exports related to Indian petroleum and renewable energy sectors. Improving tariffs on energy will have an impact on American industry and energy protection.
Strategic and political reasons: America views India not only as a trade partner but also as a strategic partner. India will be needed to balance China's increasing influence, especially in Asia. For this reason, it cannot impose tariffs on all sectors in India by imposing tariffs.
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