Trump tariffs may cut India's US-bound exports by up to 50%: GTRI

The tariffs announced by the US are expected to make Indian goods far costlier in the US, with the potential to cut America-bound exports by 4050 per cent, think tank GTRI said on Wednesday.

On August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27.

The White House said the measure responds to India's continued purchase of Russian oil.

The move places India among the "most heavily" taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, and threatens most of India's $ 86.5 billion in annual exports to America, from textiles to machinery, Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said.

 

He said in 2024, China bought $ 62.6 billion of Russian oil, more than India's $ 52.7 billion, yet faces no such penalties.

Washington avoids targeting Beijing because of China's leverage over critical materials such as gallium, germanium, rare earths, and graphite, vital for US defence and technology, he said adding the US has also overlooked its allies' trade with Russia such as the EU which imported $ 39.1 billion of Russian goods last year, including $ 25.2 billion in oil.

The US itself purchased $ 3.3 billion in strategic materials from Russia.

"The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US bound exports by 4050 per cent," he said.