Banks in Mumbai are preparing for potential defaults from exporters heavily reliant on the US market due to new 27% tariffs. Lenders are reviewing their export loan books, focusing on impacted sectors like gems, jewellery, and textiles. Banks are also examining the tariff effects on competitors and RBI’s upcoming policy review.
Weak US-leaning exporters a default risk for lenders
NITI Aayog member Arvind Virmani states that the first phase of the US-India Bilateral Trade Agreement, effective by fall 2025, will counteract the new US tariffs’ impact on India’s manufactured exports. The agreement aims to derive potential long-term economic gains over the next decade.
US President Donald Trump imposed tariffs up to 99% on trading partners, with India facing a 27% reciprocal levy from April 9. The tariffs aim to address a $1.2 trillion trade deficit and revive local manufacturing, sparking concerns over global growth and trade retaliation.
Govt analysing impact of 26% Trump tariff on India; it’s mixed bag, not setback: Official
1 year ago
India’s commerce ministry is analyzing the impact of the US’s 26% reciprocal tariffs on imports, set to take effect in stages from April 5. While the tariffs are seen as a challenge, the government views it as a mixed situation and not a setback. India is negotiating a trade agreement with the US, aiming for […]
US President Donald Trump has imposed a 26 percent tariff on Indian imports, significantly impacting sectors like textiles, engineering goods, electronics, and gems and jewellery. The move is expected to erode margins for Indian exporters and prompt investors to shift funds to safer assets given the economic uncertainty.
President Trump imposed a 26% tariff on Indian imports, one of the highest on major US trading partners. This follows his criticism of India’s tariffs and their trade imbalance. Despite efforts by India to reduce tariffs and make concessions, the levies pressure India to finalize a trade deal. Economists suggest the tariff’s impact will be […]
President Trump has signed an executive order imposing a ‘discounted’ 26% tariff on Indian imports, addressing the high tariffs that India places on U.S. goods. This move aims to rectify unbalanced trade relationships and stimulate American industry by enforcing reciprocal tariffs on countries with which the U.S. has substantial trade deficits.
President Trump unveiled new tariffs on allies and adversaries, targeting unfair trade practices. India, China, the EU, and Vietnam are among the countries facing significant tariffs on their goods. The ‘Fair and Reciprocal Plan’ aims to boost US manufacturing and ensure balanced trade relationships.
The U.S. has criticized India for high tariffs on agricultural goods, restrictive import regulations, and challenges for American companies, especially in technology and medical sectors. The Trump administration plans reciprocal tariffs. Issues include India’s opaque restrictions on imports, high customs duties on drugs and agricultural products, and regulations on dairy imports.
India is evaluating the impact of US President Donald Trump’s reciprocal tariffs set to be announced on April 2. The Commerce and Industry Ministry is preparing scenarios based on tariff differences and discussing non-tariff barriers with the domestic industry. Trump indicated that India and other countries will be lowering their tariffs significantly.