In an action that has created ripples throughout Indian business circles, USA President Donald Trump has hinted at an extra tariff consideration of 25 percent on items imported to the USA in an additional decision to that of China. It is projected that this move will cost India around $7 billion per year.
The Chamber of Trade and Industry (CTI), which is the apex body of traders and the manufacturers in Delhi and rest of India have show deep concern at the consequences of the US move. It has been pointed out by CTI Chairman Brijesh Goyal and General Secretary Gurmeet Arora, that this duty increase has caused a high degree of anxiety among the Indian exporters and the domestic traders.
India exports various products to the United States, namely metals, pearl, precious stones, leather, chemicals, textiles, electronics, electrical, spices, machinery, parts, pharmaceuticals, rice and medicine. A large proportion of these goods is also traded out of Delhi and that is why the trade environment of the capital is more susceptible to the new tariff system.
Such a decision will not only affect our exports but also affect the payment system and create uncertainty in business transactions that are going on, said Brijesh Goyal. Shipments that are already coming to the US under the old tariff rates already exist. Exports are facing uncertainty on how such orders will be handled and everything about pre-ordered deliveries is in the grey area.
The CTI has also reported that other businesses that will be adversely affected by this move are the American ones operating in, or sourcing products in India. The higher cost overhead would pressurize existing trade relations and it would also be a deterrent to future transaction.
CTI Senior Vice President Deepak Garg and Vice President Rahul Adalkha have informed that the organization will make a move to consult with major market associations so that they can strategize on how to have a fight against American products. Following the precedence of the previous campaign titled as Quit China, the CTI is contemplating a similar approach with the US products.
CTI officials have said that Chinese goods boycott is being felt on the ground particularly during the festive seasons. We feel through the same sentiment that could arise against American products more so given the fact that the country of India will digest a lot of the US based services and products, such as food channels, beverages, wafers among other products.
The CTI has indicated that it would be countering these American brands and companies with strong forces against the tariffs imposed on it, and this aspect also signifies a heightened trade dispute at the grass roots level.
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