Indian exporters decry 50% Trump tariff as major blow

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Indian exporters warned Thursday that President Donald Trump took the risk of making the cost of additional prices “not viable” after President Donald Trump ordered Steper Levies after a total of 50 percent on imported Indian goods.

Prime Minister Narendra Modi said he was willing to “pay a big personal price”, while opposition Congress party leader Rahul Gandhi called Levies “economic blackmail” and “an attempt to bully India in an unfair trade agreement”.

Stocks opened slightly on Thursday, after the first 25 % of the US tariff implementation, the benchmark Nifty Index fell 0.31 percent.

The levy will be doubled in three weeks when Trump on Wednesday signed an order to impose an additional tariff 25 % due to the continued purchase of Russian oil in New Delhi, which is a source of income for the Moscow war in Ukraine.

India is the second largest buyer of Russian oil, which has saved billions of dollars on discounted feasting.

The Indian Foreign Ministry condemned Trump’s announcement of further prices, calling the move “unfair, unreasonable and irrational”.

SC Ralhan, president of the Federation of Indian Export Organizations, said he was afraid of disturbing effects.

“This move is a severe blow to Indian exports, which directly affects our shipment in the US market,” he said in a statement.

“50 % of mutual rates have imposed the cost burden, which keeps our exporters in a 30-35 % competitive loss, while compared to all countries with low mutual rates.”

“Many export orders have already been stopped,” Ralhan said, as buyers re -evaluate the source decisions.

He said that the profit margins for “large numbers” profit from small to medium -sized businesses “are already thin”.

“It is not just viable to absorb this sudden cost increase,” he said.

India, which is the world’s fifth largest economy and the most populous nation, is ready for a huge ride because the United States is its largest trading partner, with a $ 87.4 billion New Delhi shipping equipment in 2024.

“If President Trump has announced imports from India, 25 % of additional tariffs, an emerging manufacturing center, will be overlooked,” said Shilin Shah of the capital Economics.

Shah said that India’s GDP accounts for about 2.5 2.5 percent of India’s spending.

He said that 50 % tariff “is so large to have material impact”, he said, as a result of exports, the economy will be less than six percent this year and the next seven percent, which is currently predicted.

Drugs, jewelry, seafood

High exports to India include smart phones, drugs, jewelry, textile and industrial machinery, some of which are highly labor-related equipment-including jewelry and seafood-danger.

The Seaf Food Exporters Association of India said Wednesday that 50 % tariff “affects its $ 3 billion business”.

India’s jewelry sector, which exported more than 10 billion worth of goods last year, had already warned the job losses of the low -levy level of “thousands” potentially. He called the high rate “destructive”.

An important point for India has been hesitant to fully open its agriculture, a sector that hires a large number of people in US imports.

“India will never compromise on the interests of its farmers,” Modi said in a speech on Thursday.

“They will have to pay a big personal price, but I’m ready for it”, without giving more details.

It seemed that this was a far -reaching voice than India’s early hopes for special tariff treatment. Trump said in February that he got a “special bond” with Modi when Indian leader visited Washington.

Once upon a time, the US administration has seen India as a key partner who has interests in China.

India and China are fierce rivals for strategic influence throughout South Asia.

Indian media has reported that Modi can visit rivals China for a long time in late August. The trip has not been confirmed by the officials but this will be his first visit to China since 2018.

Modi and Chinese President Xi Jinping were last met in Russia in October 2024.