Business News: US President Donald Trump Imposes Tariff on India, How Will Impact The Stock Market?

Trump Tariff on India: On April 3rd, US President Donald Trump announced new tariffs, which sparked global anxiety. Several countries faced levies, notably Vietnam (46%), China (34%), Taiwan and Indonesia (32%), and Switzerland (31%). Although India was initially believed to be exempted, it also faced a 26% tax, one of the lowest among Asian countries. Despite referring to Prime Minister Narendra Modi as a good friend, President Trump rationalized his decision by noting that the United States has long faced excessive tariffs from India. Concerns have been raised regarding the move’s impact on bilateral trade and economic relations.

How Will Tariff Policy Impact India?

The effects of these tariffs on various sectors in India are different. While the pharmaceutical business is unaffected, the vehicle sector faces a 25% tax, and the information technology sector, while exempt, may suffer indirect impacts. Metals and mining face lower duties than China, and power and utilities appear safe due to reduced solar module tariffs. Experts believe that non-electronic consumer goods, notably clothing, will benefit as India becomes more competitive in comparison to other countries such as Bangladesh and Vietnam, which previously had trade advantages. Furthermore, sectors such as banking, FMCG, and defense are becoming clearer, and domestic investment themes appear to have potential. However, with continuing negotiations between India and the United States, the future of these tariff rates remains questionable.