New Delhi [India], April 3 (ANI): Exporters in India’s textile, engineering goods, electronic, and gems and jewelry sectors are anticipated to be most affected by the tariffs introduced by Donald Trump. Trump according to experts.
US President Donald Trump has imposed a 26 percent duty on goods coming from India. This move, disclosed early Thursday morning IST, encompasses Trump declaring mutual tariffs on numerous nations such as India.
Ajay Bagga, an authority on banking and international stocks, informed ANI that these tariffs are founded on inflated estimates encompassing not only genuine custom charges but also purported currency manipulation and GST. He characterized the change in U.S. trade strategy as transitioning from “America First” to “America Alone.”
He stated, "The domestic sectors within India enjoy protection against initial impacts; however, industries such as textiles, engineering goods, electronics, and gems and jewelry face immediate repercussions due to their export nature. This morning has seen a downturn in metals and oil prices alike. Meanwhile, major pharmaceutical companies are adopting a cautious stance since sector-specific tariffs will apply to them."
Bagga pointed out that although India's domestic sectors may not be immediately affected, exporters will shoulder the burden of higher expenses.
The unexpected introduction of tariffs is anticipated to affect various aspects of India's economy. Increased taxes might result in a reduction of Indian exports, diminishing profit margins for those involved in exporting.
Moreover, investors may reallocate their investments towards more secure options like gold, the Japanese yen, the Swiss franc, and Japanese government bonds. This shift might also impact capital inflows into emerging markets.
Bagga pointed out that the stock market initially responded to the news by flocking toward safer investments and shedding more volatile assets. He cautioned that the assured economic downturn could exert significant pressure on the markets in the following days.
He stated, "What was once uncertain has become definitively known as economic and market distress. Initially, people tend to flock towards safer investments and divest from risky ones."
The fresh tariffs might present a substantial obstacle for Indian exporters, forcing them to deal with higher expenses and decreased competitiveness within the US market. Given anticipated additional economic repercussions, participants from various sectors will be keeping a close watch on this scenario. (ANI)