On Tuesday, the United States imposed a new 25% punitive tariff on Indian goods, pushing total duties on Indian exports to 50%. Washington cites Indiaâs ongoing purchases of Russian oil as justification, while New Delhi has condemned the move as politically motivated and economically damaging.
Economic Ripples and Growth Warnings
India estimates these tariffs will hit $48.2 billion in exports. Consultancy Capital Economics forecasts a 0.8 percentage point drag on Indiaâs GDP growth over the next two years. Srivastava warns itâs a strategic shock that could trigger job losses and choke global supply chain roles.
Exporters and Supply Chains Under Strain
Many U.S. buyers have paused orders. The Engineering Export Promotion Council predicts a 20â30% drop in shipments. Shamim Azad, who runs an export firm, recalls an American client halting new production orders until the dispute is resolved. Factories reliant on U.S. markets are already shutting down, while others scramble to find new trading partners.
Global Perspectives and Next Steps
Young entrepreneurs and tech start-ups across G20 markets are watching closely: rising hardware costs could curb innovation, while shifting supply chains open new opportunities in Southeast Asia and beyond. Digital nomads may feel the pinch in electronics prices, and travelers could see product costs fluctuate in global markets.
In New Delhi, officials have pledged financial aid, low-interest credit lines, and export incentives to cushion the blow and safeguard jobs. As tensions rise, businesses are adapting to navigate a more fragmented trade landscape.
How will this tariff flashpoint reshape global supply chains and growth trajectories? Share your thoughts and stay tuned for updates.
Reference(s):
U.S. punitive tariffs on India take effect; New Delhi pledges aid
cgtn.com
