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Trump Reciprocal Tariffs & its impact on India🇮🇳🇺🇸
1️⃣ What Are Reciprocal Tariffs?
Trump’s “Reciprocal Tariff Executive Order” mandates: 🔹 Countries that impose high tariffs on US goods will face matching US tariffs. 🔹 Aimed at reducing the US trade deficit and boosting American manufacturing. 🔹 India, with its high tariff structure, is one of the biggest targets.
2️⃣ Why Is India in the Crosshairs?
India has one of the highest tariff rates globally on US imports. 🔹 Average Indian tariffs on US goods: 9.5% 🔹 US tariffs on Indian goods: 3%
Some key differences: 🔹 Whiskey: 150% import duty in India vs. 0% in the US 🔹 Motorcycles (Harley-Davidson): 100% in India vs. 2.4% in the US 🔹 Medical Devices: Up to 40% in India vs. 0-5% in the US
🚨 Now, the US will impose matching tariffs on Indian exports 🚨
3️⃣ Indian Sectors That Will Suffer the Most
If the US enforces reciprocal tariffs, these Indian sectors will be hit the hardest:
🔻 Textiles & Apparel: 🇮🇳 exports $8B to the US annually 🔻 Pharmaceuticals: US is India’s largest pharma buyer (~$7B trade) 🔻 IT Services: 🇮🇳 Indian IT firms generate 40%+ revenue from the US 🔻 Jewelry & Gems: $10B exports from India at risk 🔻 Auto Components & Steel: Facing potential 25% tariff hikes.
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