US New Tariff Policy 2025

The US president has imposed new tariffs, affecting more than 50 countries, including India. This policy impacts many sectors, particularly in Indian exports.

Key Details

• India faces a 25% tariff compared to lower tariffs on over 50 other countries.
• Tariffs for Bangladesh and Pakistan are set at 20% and 19% respectively.
• ASEAN countries such as Vietnam, Malaysia, Indonesia, and the Philippines face tariffs ranging from 19% to 20%.

Impact on Indian Exports

• High tariffs could adversely affect the labour-intensive and high-value electronics sectors in India.
• Readymade garments (RMG) exports may decline due to lower tariffs on competitors like Bangladesh.
• Indian non-leather footwear and electronics manufacturing sectors may be hurt by beneficial tariffs for Vietnam and Malaysia.

Trade Negotiations and Challenges

• US-India trade talks are stalled over sensitive sectors such as agriculture and automobiles.
• India is resisting US demands to permit genetically modified (GM) agricultural products like corn and soya.
• US seeks greater access to India's agricultural and dairy markets, while India wants access for its textiles, leather, and footwear.