North India Statesman
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News India Live, Digital Desk: US President Donald Trump has taken a major economic decision as soon as he assumed office under his ‘America First’ policy. Trump on all imported goods Universal Baseline Tariff of 10 percent It has been announced to install. This decision has raised concerns not only of China but also of big trading partners like India. Let us know how much money India will have to pay to America now and what effect it will have on you.
How much tax will India have to pay?
According to experts’ estimates, India exports goods worth billions of dollars to America every year. After 10% additional charge:
Burden on exports: Indian exporters now have to sell their goods in the US market annually 6 to 8 billion dollars (about more than Rs 50,000 crore) You may have to pay extra.
Indian goods will be expensive: Due to increase in taxes, Indian products sold in America will become expensive, due to which there is a danger of their demand reducing.
Which sectors will be affected? (Affected Industries)
This decision of Trump may cause a big blow to some major industries of India:
IT and Software: America is the biggest market for Indian IT companies. Service cost may increase due to new rules.
Gems & Jewellery: There will be a direct impact on the export of diamond and gold jewellery.
Pharmaceutical: Every third medicine used in America comes from India, which may now be expensive.
Textiles and clothing: There will be tough competition in the American market for Indian clothes.
What is Trump’s argument?
Donald Trump believes that other countries are hurting American companies by selling their goods cheaply in America. He says that the money that will come from this 10% tax will reduce America’s debt and promote local manufacturing.
What option does India have?
Economic experts say that India can adopt two paths to deal with this situation:
Counter-Tariffs: India may also increase import duty on American goods (like Harley Davidson bikes, apples and almonds).
Conversation Path: Efforts can be made to keep some specific goods out of this list through trade agreements between India and America.
What will be the impact on the common man?
Although this tax is going to be imposed in America, its effect can be seen in India in the form of strengthening of dollar and weakening of rupee. If the rupee falls, petrol, diesel and electronic goods may become expensive in India.
