India is mulling diversification of its exports to deal with the probable impacts of steep rise in the US tariffs. The Commerce Ministry has shortlisted over 50 countries to export Indian goods to evade fiscal deficit, Mint reported citing two senior government officials.
Notably, US President Donald Trump has announced whopping 50 per cent levies on India for buying oil from Russia.
These countries, located across regions such as the Middle East, Africa, Latin America, Europe and other strategic areas, collectively represent close to 90 per cent of India’s total exports.
India mulls rerouting goods
The initiative aims to reroute goods impacted by rising tariffs, such as textiles, seafood, engineering products, gems and jewellery, petroleum items, and chemicals, toward new markets using focused trade promotion and enhanced market access strategies.
The commerce ministry is currently holding meetings to develop a detailed and coordinated approach for this effort.
Trump signs executive order to impose additional tariffs on India
Donald Trump on August 6 signed an executive order imposing additional 25 per cent tariffs on India for the latter’s procurement of oil from Russia. These levies were in addition to 25 per cent tariffs that Trump announced on India along with several other countries, which were announced on July 31.
While the initial 25 per cent tariff came into effect on August 7, the additional 25 per cent tariff will come into effect after 21 days.
MEA questions double standards
India responded strongly over Trump’s tariff move and said it was ‘unjust’ and ‘inappropriate’ as additional tariffs were imposed on India over measures that several other countries were adopting in their respective interests.
"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," said MEA.
