As Trump’s high tariffs went into force, data indicates that India’s exports of goods to the US, its biggest overseas market, fell precipitously by 20% in September and by almost 40% over the previous four months.
Washington’s 50% tariffs on Indian imports went into effect on August 27 and were in effect for the first full month of September. This includes a 25% fine for Delhi’s insistence on continuing to purchase Russian oil.
Since the tariff increase started, the US has become India’s most negatively impacted market, according to Ajay Srivastava of the Delhi-based think tank Global Trade Research Initiative (GTRI). The two nations are currently engaged in trade negotiations to reach a deal by the end of next month.
According to GTRI, labor-intensive industries including textiles, engineering goods, chemicals, and gems and jewelry have been hardest hit by the tariffs and have incurred the biggest losses.
Shipments to the United States have decreased for four months in a row, falling 37.5% from $8.8 billion (£6.5 billion) in May to $5.5 billion in September. India’s trade imbalance, or the difference between what a nation imports and exports, increased to a 13-month high of $32.15 billion in September as a result of the decline in exports.
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